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Author: 

Blossom,  Francis 


Title: 


Review  of  the  report  by 
the  Transit  Commission 


Dcito. 


L  J 


MASTER  NEGATIVE  f 

COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET  

OMQINAL  MATERIAL  AS  HLMED  -  EXISTING  BIBLIOGRAPHIC  RECORD 


162        Blossom,  Franois,  1870- 

Reviov  o£  the  report  by  the  Transit  oommission 
Bureau  of  valuai^ion  dated  pebritery  15,  1922,  and 
titled  "Valuation  as  of  Juno  30,  1921,  of  the 
physioal  property  of  rapid  transit  and  street 
surface  railroads  in  the  city  of  Ilew  York"  with 
special  reference  to  the  street  surface  railroads 
0(f  Brooklyn,  July  29,  1922,  by  Franois  Blossom^ 
[Albany,  H,  Y,,  Tho  Argus  oo.,  1922j 
105  p.     27  cm* 

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I— 


REVIEW 

of  the 

Report  by  the  Transit  Commission  Bureau  of  Valuation 
dated  February  15,  1922,  and  titled 

"Valuation  as  of  June  30,  1921,  of  the  Physical  Property  of  Rapid 
Transit  and  Street  Surface  Railroads  in  the 
Qty  of  New  York** 

with  aiMGiid  iilcKnoe  to 

THE  STREET  SURFACE  RAHJIOADS  OF  BRClMlLYN 

JULY  29,  1922 


BY 

FRANCIS  BLOSSOM 


COHTIHTS 


Statement. 


9Mm 
7 
9 


PART  I. 

COMMENTS  ON  THE  GENERAL  INTRODUCTORY  STATEMPlTO  rm 

VALUATON  REPORT  i^lATEMENTO  OF 

Conuneato  on  the  Ceneml  lotwductoiy  Sfcatemente  of  Valuation  Report 


13 


PARTIL 

COMMENTS  ON  THE  ALLOWANCES  FOR  CONSTRUCTION  OVERHFATV!  A*rr» 
COMPANY  OVERHEADS  AND  OTHER  COMPAN^SS^^S^^iSS 
General  Methods,  Procedure  and  NomenclAinm  TT«»/»  .r,  Voj  t. 

Company  Overheads      24 

Construction  Overheads            24 

Depreciation  of  Overheads ....    24 

Composition  of  Overheads. .    24 

Contract  Cost  ;   at 

Cost  to  Reproduce     SSS 

Taies  During  Construction     27 

Engmeering,  Design  and  Inspection  Costs .'   ^ 

Administrative,  Executive,  Legal  and  Office  Oiste ^ 

r ire  Insurance ....   29 

^SSX^  ^  r^"P      or  Company'8  Costs  Prior  t<;  Conatoidion" 2 

UnmentB  on  Group  (c)  Cost  of  Procuring  Monev    30 

^^kiH caSsr". ^'^•^^'^^i^caiii^  i 

Physical  Property  Deveiopment  Costo   ^8 

Costs  to  Create  the  BuaneBs. .    83 

ValMofOoiit»ot«forIVmer,Ad^^rtiriiiir^^   ff 


PAST  m. 

REVISION  OP  VALUATOONHK^GS  OF  THE  VALUATION  BUREAU  TOR 
1881  RBCDMBTRUCnON  COST  NEW, 

Dwcription  of  Statements  Accompaayiag  Report 
ooBUDary  of  Revised  Valuations  

EnjMuttion  of  statemante. .  . . ::::::::::  

Statement  I  

btatement  II  

^atementm  

Statement  IV  

Statement  V. 

&7a™7r^a''g^":'"^" 

Mei^od  of  Obtaining  Valuation  of  Damasee. 


37 
87 
38 

38 
39 
39 
39 
39 
40 

m 

41 


STAIXMENTS  ACCOMPANYING  REVIEW. 

wmm  ••  to  m 


am  WMBiXJ  MLECfEBIO  BAILBOAD  COUPAMT: 

flUflnKMEin-     I.   Summary  of  VUiMS.  ^      ^  . 

Statement   II.   Overhead  Chargw  to  Omfmy  on  gPf^^J^^g^ 
Statement  ITI.    Overhead  Charges  to  CmuptMJ  m  Nott-Opmtiaf  rn^mtf. 
SxATEiiXNT  IV.   Shortages  in  Inventory.  ^    .       .  » 

THE  CONEY  ISLAND  AND  BROOKI^^li&»a^^ 

OCXNXY  ISLAND  4  BROOKLYN  TBBlflNAL  COUfPlMT. 

SKiaufBira    I.  SmmMu^  of  VaIum.  ^  » 

BiftSBiiainr  n.  Overhead  CkargM  to  GomiMiiy  m  OpemUiig  Property. 

aEaanoifT  ra.  Overhead  Charges  to  CompMqr  «i  m-Opcrmtiiig  Profertgr. 

St&naaora  IV.  Shwtog^  to  Inventorj^^^^  ^ 

BBOOKLYN,  QUEINB  COUNTY  k  SUBURBAN  RAILBOAB  OOMFAIIT  t 
BCATKMKHT     I.    Simunary  of  Values. 

Bl*lKM»ra   n.   Overhead  Charges  to  Compuiy  on  OP«^"g_.^f°iy^^y- 
SrATKHKirr  HI.  OwrbMid  Charges  to  Cemfumj' m  TXtmrQtmmmg  rntmtj. 
Statement  IV.   ShortM  m  iBTOBtoff.  ai..«^— i- Ww 

STATEMENT    V.  OverliMd  Clwrges  to  Gompuiy  on  ShortogM  m  Jmfmmj. 

SOUTH  BROOKLYN  RAILWAY  COMPANY  AND  LESSOR  COMPANIESj 
SOUTH  BROOKLYN  RAILWAY  COMPANY. 
IBOSPECT  PARK  4  CONEY  ISLAND  RAILROAD  COlffANY. 
SoSPEOr  PARK  *  SOUTH  BROfMCLTK  RAILBOAD  COXPANT. 
HEW  TOKK  4  CONEY  ISLAND  R  ATTillHAB  OOMPANT. 

BiaaBam  n.  Ovwknd  Ghsrgei  to  CanpMiy  on  Operating  P>qf«ty. 
BkaSSMENT  III.   Overhead  Charges  to  CoMpuj  on  NoB-Opemttag  Property. 
BumoifT  IV.   Shortages  in  Inveatory.  ^  ._   .  

THB  BBOOKLYN  HEIOHTS  RAILROAD  COMPANT: 

Statement     I.    Summary  of  Values.  ^      ^.     __  . 

SXAniaiiT   II.   Overhead  Charges  to  Company  on  Oper!i*mg  I^oper^. 
BtAmmnr  m.  Orarhead  Oiai^  to  Coaffuqr  on  M««4Jpii«ttaf,*Yot«iy. 

BtArmmm  IV.  SkortaeM  ^  lawatory.  ^   .  .i.t.... 

SrATBMBirr   V.  OtcriiMid  Charges  to  Coaqiaay  oa  Shortafw  la  lavwtoty. 

CONEY  ISLAND  AND  GRAVESEND  RAILWAY  COMPANY: 

Statebcent    I.  Saauosry  of  Vatvea.    - 

Statement   II.   Overhead  Charges  to  Coaqpaay  «■  OperaUag  Propar^. 

Statuiknt  IV.   Shortages  in  Inventory.  -   »   ^  

If         *   Y.  OvwlMaA  OMfisa  to'  'CMBfaay  «■  SMttatai  m  laMmiy. 

Ttt  BROOKLYN  CITY  KAILROAD  OOMPAmT: 

Statkmeitt    I.   Simunary  of  Values.  ^.     „  . 

SKAmonr   H.   Overhead  Charges  to  Company  on  Operating  ^"'V^^f; 
StAWMairr  m.  Overhead  Charges  to  CcHfaay  m  Vm-Ormmmg  PKOffWty. 

Statement  IV.   Shortages  in  InTeatary.   - 

Statement    V.   Overhead  Charges  to  Compaay  oa  ShortafM  la  mnmmf. 

SUMMARIES  AND  PERCENTAGES  OF  OMISSIONS  OR 
SHORTAGES  FOR  ALL  COMPANIES 


6 


SAN  PRMieWOO 


SANDERSON  a  PORTER 

ENGINEERS 

82  WILLIAM  STREET  NEW  YORK 


CHICAGO 


STATEMENT. 

*i,  ^  ^?fl«wiiig  Renew  is  made,  so  far  as  practicable,  iu  conformance  with 
the  methods  and  prooedm  foUowed  by  the  Valuation  Bureau  of  the  Transit 
Commission  in  its  report  dated  February  15, 1922.  The  full  review  and  analysis 
ot  such  report  will  require  additional  conferences  with  the  Engineers  of  'the 
Valuation  Bureau  and  the  study  of  matters  beyond  the  scope  of  this  Review 

h^'^^^^^^'^^^K^'^'T  P'T"'        ""I^ortant  facts  that  have" 

oeea  aaoertauted,  oanun^t  on  thrai  from  the  viewpoint  of  experience,  derive 

b  ^l?id^°i,fto'?  «i«8e8tioii8  as  seem  appropriate.  Sich  presentation 

Part  I—idiich  cjMiimente  on  the  General  Introductory  statements  of 
V  aluation  Bepwt. 

Part  II— whic^comments  on  the  Allowances  for  Construction  Over- 
tada  and  Company  Overheads  and  other  Company 
Ooats  foe  mil  properties. 

Part  ni— idliA  deals  with  the  changes  that  should  be  made  in  the 
itema  and  coats  siiown  in  Valuation  Report  as  applicable 
to  Land  and  Right  <rf  Way  Values,  Conbract  Coste, 
Construction  and  Company  Overhead  and  Other  Costs 
Quantity  Shortages  and  so-called  Non-Operating  Prop^ 
erty  for  Reconstruction  Cost  New  as  of  1921. 


This  Review  covers  the  properties  of  the  following  companies: 
The  Nassau  Electric  Railroad  Company. 
The  Coney  Island  and  Brooklyn  Railroad  Company 
Brooklyn,  Queeiw  Omnty  &  Suburban  Railroad  Company. 
South  Brooklyn  Railway  Company  and  LeMN>r  Companii. 
The  Brooklyn  Heights  Railroad  Company. 
Coney  Island  and  Gravesend  Railway  Comnanv. 
Tfce  Brooklyn  City  Railroad  Company. 


July  2%  1922. 


PBAVoa  Blossom. 


GENERAL. 


1 


J  *J^\  ComtaMiWii  has  stated  that  the  Report  of  its  VaJuatiim  Buieaii 

dged  ^ebroaiy  16,  1922,  is  tentative,  is  open  to  criticisms  or  suggestions  with 
rapeet  to  ite  owtents  or  conclusions,  deals  only  with  values  having  to  do  with 
the  contwiq»hted  powliase  <rf  the  properties  covered  and  does  not  relate  to  rate 
making  or  to  condemnation  figures.  I  have  reviewf»d  tiwt  portion  of  ^  Vtlua- 
tion  Report  which  relates  to  the  Brooklyn  Surface  Boada.  I  have  also  oommmA 
Its  tigures  witii  data  furnished  to  me  by  the  companies  and  information  inmy 
SS^Tisb         BeJte!^"'*''*'  Valuation  R^rt  as  a 

My  views  and  oondnsions  ai«  hemn  st«ted.  They  are  first  given  as  com- 
ments <m  the  general  8totement«  containiMl  in  tlie  printed  tea-page  introduction 
of  the  Report  entit  ed  "  Report  on  the  Vdnmti^T TnmiH  Pw^SST^ 
Greater  New  York;"— and  then  on  the 

(a)  Errors  in  the  bases  or  principles  <rf  valoatioa  adopted  ind  in  Hie 

conclusions  expressed. 

(b)  Omissions  of  items  or  quantities  from  inwtoriei. 

(c)  Under-estimates  of  unit  ooets. 

(d)  laadeqnatoalliNmioeifor  JobOmfcead()o8(& 

(e)  Inadequate  alkmanoes  fer  Con^y  Omiietd  Costs  durimr 

oonetnietiiiiL  ^ 

(f)  Omissions  of  pre^50Bitniotii»  Company 

charges  thereon. 

(g)  Omissions  of  other  Companj  Coets^ 

•IfJ,  SlTi'^i?  «  to  «»  differences  a  conference  will  be  necessary 

mUi  the  Valuation  Beport  Engineers  ngaiding  each  property.  ^ 

Omissions  of  many  kinds  are  ineritable  in  makimr  inmtories  and  iwMm. 
struction  c^t  estimates  of  properties  and  it  is  necew^l  to mateUb^ 
ances  therefor.   The  principal  omissions  comprise: 

(a)  Property  overlooked  and  not  listed  because  inaccessible  or  not 

readily  seen. 

(b)  The  actual  costs  of  removing  the  obstacles  met  when  the  work  was 

h^^"^  not  erident  when  the 

m    Undwertimates  of  qi«ntities,  unit  construction  costs,  job  and  2 

and  iraluatm  woik  ai»  lAaly  to  u»le«estimato  the  compmiy  coste  i  ^i^^ 


9 


3  t»yii  tnd  the  pwHSonstruction  work,  the  financing  and  interest.  TheyMMtoitt 
differentiate  properly  between  the  rates  for  interest  ^^^^^^^^^J" 
speculative  conatniction  enterprise  without  earnings  or  eiedit  awl  ««« 
securable  by  m  «iiiig  CMieem  having  earaings  adequate  to  guarantee  payment 
of  intetest  and  Svidendi  on  the  seemiliee  it  markets  iot  mm  construction. 

WhcD  eonsnlted  on  these  matters  I  advised  that  every  facility  and  the 
'    fullest  information  be  given  the  Commission  engineers,  and  that  they  be 
furnished  with  full  data  regarding  all  the  properties.   I  was  so 
proceeded  accordingly.  I  utilized  competent  assistute  ^  «>2P«;*«d  "^It^ 
Commission.  Amoiig  thoee  I  had  widi  me  ill  my  work  oil  the  ^ooWyn  Sn^ 

IiBii»  IB  addition  to  oBgiiieeri  regokrl^ 

4  B.  a  Bnck— Gradoated  in  1887  from  Trey  Polytechnic  Institute;  was 

formerly  a  partner  in  Sanderson  &  Porter ;  in  Government  service ; 
Chief  Engineer  of  Manhattan  and  Williamsburg  Bridges;  Chief 
Engineer  of  Dominion  Bridge  Company ;  Engineer  of  Mamtenance 
^Way  of  Kew  York  Railways ;  and  wlA  ma  lor  over  two  years  on 
Brooklyn  City  Eailroad  woik. 
Thos.  F.  MuUaney — Engaged  for  over  thirty  years  in  eleotrical  coBr 
struction  and  iequipment  woA  throughout  the  United  Sutra; 
foimerly  Chief  Engineer  of  Third  Armm  Baihraad,  J»«w  Ywk. 

J.  R.  C.  Armstrong— Engaged  for  over  27  yean  on  cwistruction  and 
operatifm  of  power  statiims  and  substations;  electnficaticm  of  horae 
1^  eahle  roads;  Chief  Electrical  Engineer  in  charge  of  the 
engineering  and  design  of  electric  freight  and  passenger  rolling 
stock;  and  in  practice  as  Consulting  Engineer  in  the  foregoing 
lines. 

Clias.  A.  Remelius— Engaged  for  over  35  years  in  machine  tool  design; 
a  Mechanical  Engineer  thoroughly  familiar  with  raihroad  tools  and 
th^  construetion. 

1  Julius  A.  Hanna— Eiw>d  for  w«r  ^  7^     ^  manulMsture  and 

sale  of  ndlioid  cms,  tru«a»  and  equipment;  reoogniaed  to  he  a 
rolHng  ■took  vahution  and  appraisal  o^ert  theseiB. 

In  addition,  I  have  eonfencd  on  Iiand  and  Bi^^t  of  Way  and  Easements 
with  J.  H.  Bennington  of  the  Bifartmont  of  Real  Estate  &  Taxes  of  the 
mmfm^mKgkiTmaACoB^n^.  I  hav«  used  herein  the  values  I  obtained 

from  hTf^T 


10 


COMMENTS  ON  THE  GENERAL  INTRODUCTOEY 
STATEMENTS  OF  VALUATION  REPORT. 


PARTL 


6 


COMMENTS  ON  THE  GENERAL  INTRODUCTOBY  STAT£M£NXS 

OF  VALUATION  REPORT. 

(1)  The  "  Original  Cost  "  valuation  described  in  the  Bepott  appears  to 
be  a  mixture  of  estiimted  and  of  actual  costs  and  of  many  assumptions,  indi- 
cating that  the  valuing  engineer  has  presented  figures  which  show  what  he 
dumgiit  the  properties  probably  cost  or  should  have  cost,— under  conditions  he 
assumes  to  have  exiated  when  h»  assumes  tfaej  were  <aeated;— imAer  dian  whtA 
they  actually  did  cost,  on  a  recognized  accounting  basis.  The  costs  and  prices 
prevailing  one  or  two  generations  ago  are  not  either  normal  or  applicable  to 
present  purchase  and  sale  appraisals,  and  can  h&ve  no  value  therein.  They 
mll^t  iranraut  eoiisiderati<m  in  a  rate  case  to  arrive  at  an  "  investor's  sacrifice  " 
igare  of  cost  This  would  necessarily  ineliide  aeemed  deficits  in  fair  letorn, 
or  gong  value  iiiid«r  tiie  New  Yoik  law,  and  ote  difeot  and  indiraot  costa. 

(S)  The  lil0-1914  BeooiistnictioB  Goek  desorifaed  in  the  Valuation 
Report  uses  prices  which  it  dedgniates  "  pre-war  prices."  These  are  supposed 
to  be  the  prices  prevailing  during  such  years  but  appear  to  be  the  eztromely 
low  prices  of  1914.  These  also  have  passed  away.  While  nearer  the  prices  of  7 
today  than  are  Ihe  original  costs  of  prior  years,  there  is  no  justification  for 
calling  1910-1914  prices  nomurfeKcept  for  their  own  period.  They  are  *uper- 
normal  judged  by  many  earlier  or  lower  prices,  and  sub-mortMl  judged  by  the 
higher  prices  which  have  since  prevailed.  Neither  does  a  normal  exchange  value 
of  commodities  east,  although  the  ratio  of  the  average  price  of  rails  and 
meehamc^  ai^eieetrical  equipment,  etc,  to  the  average  of  living  costs  is  much 
less  vanaWe  ^  ihe  of  priees  of  single  commodtkiea.  The  gold  dollar 
shows  the  mosl  estienie  variation  in  vmhie  as  measured  by  everything  else; 

(8)  The  1921  Beoonstmetion  Cost  valuation  described  in  the  Report  is 
based  on  an  inventory  stated  therein  to  have  been  made  as  of  June  80  192L 
and  on  prices  stated  in  Report  to  be  taken  in  the  "  period  of  the  first  six  Stidnths 
of  1921,  which  was  immediately  preceding  the  completion  of  the  inventory 
and  intended  to  reflect  the  then  '  present  day  prices  and  conditions.*  " 

,^JA)  In  each  of  the  three  above-described  bases  of  negotiation  the  Report 
IM^at  deduction  should  be  made  either  for  depreciation,  or  for  the  cost  of 
gH^ptte  propeiiiet  into  fintdass  operadng  condition.  In  this  ccmnection.  c 
flwlleportstatw  under  Ae  caption  » 
investor  it  would  become  necessary  to  trace  the  actual  investment  of  the  present 
holders  of  the  securities,  and  to  ascertain  whether  such  investment  when  hhmIb 
reflect^  ^  depreciated  condition  of  the  property  before  any  iniustice  in 
(iite^<^reei»tion  £mn  the  full  vahiatiou  of  the  property  could  be  seriously 
maintained.  Investon  in  transit  properties  have  ehai^^  many  times  sinoe 
operation  was  first  commenced,  and  the  price  paid  in  the  transf^  undonbtedlv 
considered  the  condition  of  the  property."  This  is  incorrect,  for  a  stot^ohhv 
succeeds  «o  all  rights  of  a  previous  stockholder,  and  the  justice  or  injuatioe  of 

18 


S  iBj  meduid  ol  iNSliiii  4mtaMam  eumol  lie  afleeted  hj  a  ekni»  k  Ite 
ouMffiMp  of  ■eoiintiee---iiMt]ier  wmk  elumge  is  effleoted  by  purchase,  gift, 
bequest,  ezehsnge  or  otberwise.  Moreover,  prieee  paid  lor  •took  exe  luiiaUy 
dupentet  on  present  or  prospective  eaminge. 

The  Report  further  states  that  "the  straight  line  basis  has  been  ^te 
uniformly  accepted  as  the  most  practical  mieans  of  determining  the  ainoiint 

9  whididioiild  be  dedoeledfraiiitevtlaeol^  proper^ 

appUet."  This  statenMBi  alio  kineomet  Sodi  basis  has  been  quite  uniformly 
fejeelei*  This  is  admitted  in  testimony  ^ven  at  the  hearings  held  since  the 
Report  was  presented.  The  reason  it  is  rejected  is  that  the  straight  line  method 
is  illogical.  It  takes  no  cognizance  of  the  wear,  tear,  us^  expoaore  or  condition 
of  Ike  property  nor  of  tiie  amomil  of  Hie  expenditiiM  idnde  teeon  lor  Bun- 
tenmee,  repairs,  icnewale  and  repkoementa  On  the  straight  line  depreeictioa 
tiMory  of  the  Valuation  Report  two  pieces  of  equipment  of  the  same  age  are 
given  the  nme  depteeiaition  and  aotoal  facts  as  to  their  real  condition  are 
ignored. 

Two  methods  of  computing  depreciation  are  used  in  the  Report,  viz. : 

(a)  Straight  line  depreciation,  based  on  the  proportion  that  the  esiir 
n^ed  expired  portion  of  the  ettimaied  life  (with  allowance 
inr  estimated  salva^^  or  aenp  valne)  bears  to  the  total  esl»> 
wmhi  life  (imIi  lilt  Waf  apaaalalifi  or  oIdioiiii  in 

(k)  Bivneiite  detiUMiiied  bj  iw  eikimated  oost  in  19il  of  plaeiBf 
A»  propMtisi  in  Mmtdtm  oftntiag  eaaditiwi, 

10  (ft)   11m  Import  advoealeslaki]«^i»«8!]ed<'origiiiale^ 

^fffiAftg  tiwreffom  the  eoal  of  plaeinf  IIm  properties  in  infe«las8  operating 

DWiliitfiHi  at  &e  higher  prices  of  1921.  It  includes  in  the  amounts  so  deducted 
both  its  estimated  "  deferred  miaintenance  "  and  its  estimated  "  deferred  replace* 
n^nts,"  t.  e.f  in  addition  to  deferred  maintenance  the  Report  deducts  mudi 
accrued  etraii^  line  depreeiattioB.  lleBeparttknixeesmBMBditbaltiMMMnt 
of  midni^  ipKning  eatlBiailid  vahw  of  dM  noMipan^  pmpvty,  W  oSmd 
to  the  omns,  in  bonds. 

The  method  used  in  this  connection  is  stated  in  Valuation  Report  under 
the  caption  "  Conclusions  and  Recommendations,"  and  reads :  "  It  is  our  con- 
clusi(m  that  a  fair  valuation  for  the  existing  property  of  companies  other  than 
that  inchided  under  Goutraeta  Voe,  1,  S,  8,  and  4  and  Mr  vdated  eertifaatet 
WNldd  eoMuA  in  sHoiiiBf  Hie  original  oost  less  the  ompmditures  necessary  to 
pBt  Hm  'property  in  first-class  condition."  I  do  not  agree  with  this  conclusion. 
It  is  difficult  to  see  how  it  could  be  reached  by  business  men.  Certainly  none 
of  those  who  wrote  the  Report  would  consider  such  a  method  of  valuation  fair 
if  applied  to  tbeir  mm  hone  or  property.  U  the  eoncMoa  or  rsle  eKprsased 

11  in  1M  Bsport  nere  gBmniSfy  ap^ed  owners  might  have  to  pari  with  property 
lor  noHdng,  or  pay  a  boyer  for  taking  it.  It  penalizes  investors  who,  instead 
of  waiting  until  1921,  spent  their  money  20,  30  or  more  years  ago  to  serve  the 
public.  A  cubic  yard  of  excavation  or  fill  work  done  in  1890  is  now  as  valuable 
to  the  pnUie  aa  if  done  in  19S0.  Had  tiie  eonehiaioii  or  nds  been  originally 
aimoiiMed  #at:  inaletii  m'tAut  Wmi»  'Of  prqier^ 'iSkm  itHioada  mM 


appreeiatiOB  in  ytlbB»  bnt  tlmt  omnen  of  poblie  aervioe  property  would  be  11 
denied  any  appreciation  of  value  if  and  when  they  aoU  tiiar  property, 

Brooklynites  would  probably  now  be  walking  or  riding  in  horse  cars  or  buses. 
This  valuation  is  for  the  purpose  of  purchase.  For  all  work,  whenever  built, 
it  would  seem  that  the  owners  are  entitled  to  receive  its  present  value. 

(6)  Herein  I  deal  with  basis  number  three,  mentioned  above  and  given 
Report,  namely,  reconstruction  cost  at  1921  prices,  because  I  do  not 

eo^er  tiiat  a  ralvation  arrived  at  by  any  other  method  will  meet  the  tests  of 
enmnt  bnalBeaa  praetiee  lor  Hie  pnrposes  of  proposed  negotiatioBS. 

(7)  The  Report  states  under  caption  "  Expenditures  Neeessary  to  Place 
Property  in  First-Class  Operating  Condition  "  that  the  pxescmt  day  condition  12 

is  not  necessarily  that  of  June  30,  1921.  This  statement  is  particularly  true 
now,  as  very  liberal  expenditures  on  maintenance  have  been  made  since  the 
enaetion  of  the  Transit  Act,  and  the  values  of  the  properties  are  now  corre- 
Hxmdingly  increased.  The  lesser  prices  <rf  the  present  day  woul^  by  reducing 
the  costs  of  the  work  which  the  Report  deducts  as  necessary  to  put  the  properties 
in  good  condition — show  larger  values  for  each  of  the  propertisa.  Hie  Report 
includes  in  the  amount  which  it  so  deducts  at  1921  prices: 

(a)  An  estimated  amount  to  cover  the  estimated  requiieoienla  lor 

overcoming  deferred  maintenance ; 

(b)  A  large  additional  estimated  amount  to  cover  its  estimates  for 

''deferred  replacements"  of  equipment,  i.  e.,  equipment 
^^tiek  h  aarames  dioald  be  retired  from  service. 

Moreover,  audi  deferred  replacements  have  been  determined  bv  an 
erroneous  meOod,  I by  assuming  the  ezpenditnro  of  money  to  place  property 
m  first-ckss  condition  and  then  retiring  such  property.   An  indication  of  the 

magnitude  of  the  aniount  that  the  Report  claims  should  be  allowed  for  deferred 
replacements  is  given  by  the  statement  appearing  in  Report  of  Public  Service 
Commission,  First  District,  New  York,  for  year  ending  December  31,  1920, 
OB  pi^  88,  whidi  gives  I9ie  then  deferred  maitUewmce  of  the  surface  lines  11 


asfiiOoiiia: 

"         AU  eoB^panies  (baaed  on  8100  eaia)   |281,lft0 

*  Trade  SPmm0 

Brooklyn  City  Railroad  Company   i  500  QOO 

Brooklyn  Heights  Railroad  Company   101000 

Brooklyn,  Queens  County  &  Suburban  Baihroad   670*000 

Nassau  Electric  Railroad  Company   1  300  000 

Coney  Ishmd  &  Graveeend  Railroad   '  70  000 

OoMjIriaadlbBrooklyBBailnadCo..   423^000 


iM95,159 


mWmm!!r!i%Jm  l^U.^ tmt^^nnwS\t%mitr'^  »nmattm  whidi  MBoiuto  for 

The  deferred  mainienanee  phu  deferred  replacements  for  these  same  com- 
panies is  eatiiiiiiBd  lor  1921  in  TahmtioD  Bepoi*  $11,868,645. 


15 


13  Ib  tliia  oonnectioB  #i  ¥«lluitiaii  Beport  states  "  it  is  believed  that  due 
eanncknitiflii  should  \m  gifw  to  m  mtimt^  of  Obib  niWMnry  ezpendknres  of 
tiii  dMuraeter  as  »  pnetel  mniia  of  detamfaupg  tka  Mlwd  itttar  Hub  l3b» 
theoretical  dgpwmialioii.   Life  is  necessarily  aftHtad  by  ithe  dUaAmd.  0f  ihfb 

14  lepairs.  Benovation  and  rehabilitation  from  time  to  time  will  o'pen^  to  make 
over  and  renew  and  if  successively  continued  may  prolong  the  line  in  service 
to  an  extent  difficuHt  to  estimate."  This  statement  cancels  the  preceding  state- 
mi^t  in  the  Beport  which  says  in  efiFect  that  it  is  proper  to  deduct  theoretical 
dt^mmmim  iMMd  en  age.  It  ■wlwtmtiitoe  the  eontontkn  made  by  the  oooi- 
pniae  tta%  lor  fraper  detamiiiuitioii  of  diBpmAi&am,  ftadmgi  must  not  be 
tlMMMit'ii.ill  Iwl  mnal  be'  bund  'IM  Iftpfflfjim      on  ^Miib 

The  Brooklyn  Surf  eoe  Boed  praportiei  tan  now  in  seasoned  condition  and 
require  only  that  enough  money  be  spent  on  them  to  enable  then^  to  give  a 
quality  of  service  equal  to  that  which  the  same  properties  could  give  if  new. 
To  spend  more  than  this  amount  would  be  wasteful  and  extravagant  In 
amving  at  a  purchase  and  sale  figure  it  may  be  proper  to  allow  a  credit,  from 
tiie  Taliie  of  the  propepty  if  netir  in  aBMNDit  niBeiaBt  to  pat  ikme  propertka 
into  eonditkn  to  gite  iiafreiaaa  aMfM%  bat  it  k  not  pi^^ 
ooat  of  new  eqaipmcnt  expected  to  be  pwrnbaaed  niA  <i»  iljaal  el  fanwaiinfl; 
net  earnings  reoeivaUe  by  tiie  new  ownera. 

In  the  record  of  the  service  hearing  had  recently  before  the  Transit  Com- 
mission in  the  mattter  of  the  overloading  and  underloading  of  the  Brooklyn 
^5  Surface  Ianea»  testimony  was  given  as  to  the  b^eficial  effect  on  the  service 
of  faont  eipenditaiaa  made  on  aMinlnnMe  by  the  Brooklyn  Qwef»M  Linea. 
In  oommeDting  thereon  Mr.  Badiagton,  Counsel  to  the  Commission,  then  ^ted, 
in  connection  with  the  testimony  of  Mr.  D.  L.  Turner,  Chief  Engineer  of  tiie 
Commission, — "  it  is  somewhat  of  a  relief,  Mr.  CmrimHwiniiiff;  to  find  Maiiuti 
that  is  proper  under  the  ^hai^ging  conditions." 

(8)  Whether  the  owners  would  be  willing  to  aee^t  bonds  instead  of 
cash  is  a  matter  for  them  to  determine.  There  is  of  course  a  difference  between 
the  proper  price  for  these  roads  if  paid  in  cash  and  if  paid  in  bonds  issued 
againat  tbe  gniap  wiOMNit  e  eity  gomaaftee  of  the  booda.  The  rate  of  interest 
and  the  tem  of  the  Onmp  bond  woaldabo  be  important  laetoaa.  At  one  of  ^ 
hearings  the  Engineer  of  the  Commission  testified,  in  this  connection,  that  the 
Beport  Engineers  assumed  that  7V^  per  cent  bonds  could  be  sold  for  par. 
The  corresponding  price  for  a  5  per  cent  bond  yielding  per  cent  to  maturity 
woald  be  but  66^^  for  a  50  year  bond;  68^  f a  40  year  bond;  70>2  for  a 
SO  year  bond;  and  74>4  lor  «  SO  year  bond. 

10  (9)  Certain  general  costs,  some  of  which  are  mentioned  in  the  Report, 
apply  to  »11  the  Brooklyn  aorfaee  roads.  Sndi  eosto  include  the  Construction 
Ovethead  eoati  and  the  Compainr  Oteited  eoMiy  whaieaa,  tiia  dlieet  individual 
property  costs  for  materials  and  labor  are  a  function  of  quantitiea  in  each  case 
and  of  their  corresponding  unit  costs.  All  such  general  costs  are  as  inevitable 
and  unavoidable  as  the  costs  of  steel  rails  or  cars.  They  may  be  computed 
etHMr  on  the  baais  of  material  and  labor  ooats  or  they  may  be  based  on  reason- 
abb  eaUMatea  fiand  Igr  msptanmm  liad  in  the  balUiiBg  of  aimilar  properte. 


(10)    In  the  estimates  given  for  1921  leoonatnuNikm  oaats  no  allowance  ]0 
IS  mcluded  in  the  Report  for  the  extra  cost  of  piece-meal  oonstmotion.  Though 
this  item  is  possibly  irrelevant  on  the  basis  of  1921  reconstruction  it  seems 
proper  to  point  out  that  substantial  addition  should  be  added  therefor  in  any 
aatisnrtaa  of  fffiginal  or  aetoal  or  hiatorical  cost 

(Jl)  Beport  underestimates  the  allowances  that  must  be  made  for 

ooato^land  and  right  of  way.  Such  costs  must^  as  estimlated  by  Mr.  Benningtoo, 

ba  talw<»1lie  average,  at  not  leaaliamLMtimea  the  assessed  valuati^^^  In  17 
ttooaaeofthekiidownedliyliieConaylalandABiook^T 

whidi  IS  a  busmess  corporation  and  not  a  railroad  con^aoy,  the  land  is  believed 
by^e  Company  to  be  saleable  at  more  than  double  the  assessed  valuation.  That 
theae  nraltipUers  are  conservative  is  proved  by  a  detailed  signed  statement  of 
aaM  poidbaaea  of  aone  200  parcels  of  land  prepared  by  Mr.  Benniniijton. 
dated  July  26,  1922.  These  fignrea  of  1.60  ti«8aAe««aaaidvahiationZ«S 
be  us^  m  place  of  the  figures  given  in  B^Murt  whidi  are  Aenin  alatod  to  be 
Market  value  as  of  June  30, 1921,  determined  by  expert  realeatateararaisers- 
this^ark^  v^  was  held  to  apply  to  both  the  original  cost  and  the  costs  ti 
reprodoee.     Tlie  Beport  doea  no*  even  include  the  necessarily  incurred  costs 
mjidental  to  Ihe  aoquiei!ti<m  of  the  land  and  right  of  way,  nor  the  c^ 
mterest  and  taxes,  of  carrying  the  inveatment  in  land  and  right  of  way  during 
construction.    This  land  must,  in  most  cases,  be  acquired  weU  in  advancellf 
toe  starting  of  canstruotion.   Interest  mu»t  be  thereafter  paid  on  its  cost  and 
tuna  tun  thnmafter  payabfo  on  ouch  property  and  mjost  be  paid  if  the  Tax 
pe^irtar^nt  does  ite  duty.  Aa  toatified,  in  tfiia  eonoeetion  by  Mr.  Bennington  18 
in  the  Consolidated  and  Brooklyn  Bajad  Tranait  hevinga,  taaai  havebeen 
levied  and  paid  on  land  and  on  uncompleted  structurea  during  oonatmotion  and 
TfJl^^"^  ff*  ""^S  operation.    The  present  companies  report  such  hnd 
n^-  atnictarea  to  State  Tax  Commission  when  purchased  and  a  copy  goes  to 
4e  local  Tax  auAontaea.  The  Beport  aima  to  justify  the  inadequate  pri^  it 
uses  for  land  and  nght  of  way  eatimatea  by  aMag:        maitet  rahie  is  a 
price  to  the  purehaaer,  ondaaj  aooh  ebaq^  altMh  to  paed^ 

.r.A  ^^^^  ^  Eaasments,  Private  Bl^t  of  Way,  Gonsente 

and  Damages  should  be  limited  in  all  valuations  to  Ae^riginal  eoS  shown  on 

the  books,  and  that  Aey  have  not  enhanced  by  hmd  value  increases  or  rental 
value  mcreases.  This  statement  is  incorrect  as  would  be  soon  discovered  bv 
TJJ!^^U^Zf^^  to  obtainsuch  property  and  rights  or  to  meet  the 

i««dd  dewdy.  Efen  .Lr  making  this  reference  to  and 

(13)    The  Beport  inebdea  notiiing  for  the  value  of  many  miles  of  irrevo-  1Q 
cable  and  perpetual  easements,  *.  a.,  toe  value  of  toe  perpetid  riThte  to 
struct  and  operate  through,  on  and  over  the  land  occupied  bv  Ae  tn^  TW 

'A^Zf^Z^-'^S'^''^'^^^  priva1.^ownenr^e^^ 
fife  form  of  of  way  m  locations  that  became  streets  when  officiallv 
as  such  eabsequent  to  the  obtaining  of  these  company  casemate  Such 

^T^^^"^  not  now  be  p«M^  in  atiy  »ao&ion  pro-am 


If 


t0  ( 14)  The  Report  does  not  include  valuation  of  physical  property  develop- 
meiA  oo0ts,  nor  for  the  oo^t  of  experimentation  or  changes.  Tkew  ootte  indw 
ttiveC  node,  gndbciaiigM  wd  other  work  done  at  the  instance  of  paUieratlMin- 

tiia,  or  im  otiber  canaes,  ol  which  work  no  physical  evidence  now  exists  and 
which  therefore  canmot  be  ascertained  from  an  inventory  of  the  property  taken 
at  this  time,  nor  from!  any  othetr  sources  except  company  or  personal  records 
or  ^e  recollection  of  those  who  were  engaged  on  such  work, 

(15)  The  R/epoirt  does  not  include  any  valuation  for  expenditures  made 
to  ereste  and  develop  the  business.  It  deals  only  with  the  costs  of  reooDStruCting 
the  phyiieiil  property,  wbrnem  1M  tmapukj  yropattj  lAaek  is  ewmtd  tmd  ii 
ptopoied  Ho  be  pmiebMed  otHOprises  both  its  physical  jMPoperty  and  its  attached 

20  busineM.  Any  estimates  of  cost  of  reconstruction  must  assume  that  the  physical 
property  is  wiped  ou!t  and  then  reconstructed.  In  addition  to  such  expenditures 
for  physical  property  other  large  expenditures  would  immediately  have  to  be 
made  to  Teeomtmet  or  leeresfte  tiie  eadstii^  cumpetiUf^  Vnnneas. 

(16)  The  Report  does  not  include  any  valuation  for  power  or  the  adver- 
liilif  eomtniota.  It  makes  no  estuuitoi  of  wteatkn  for  the  eontwwti  nydb 
9mM  in  the  iotai  «f  £naidliiMi  (or  frandiiie  rahw).  This  means  the  pmit 
irarth  of  future  eamiigi  iuidflr  existing  franchise  conditions  and  under  con- 
ttacrts  wherein  the  companies  have  a  perpetual  franohiae  fgr  the  i^malw  part 
ef  the  mileage  of  their  lines. 

(17)  As  to  the  methods  used  in  making  its  valuations,  the  Report  has 
assumed  that  only  a  porti<m  of  the  work  would  be  reconstructed  by  the  contract 
method.  This  assumption  is  contrary  to  customary  practice.  If  the  work  were 
so  lelnik,  as  ciiiitom|ilated  in  Hw  Beport,  Company  Ooeta,  inelndi^g  ill 
ateiinistrative  and  engineering  costs,  would  be  greater  by  enou^  to  offnt 
saving  in  Job  Overheads  and  comtwclor**  awfieea  wbidx  ^  Ba|Mrt  Mil— lUllJj 
•asunes  could  so  be  effected. 

21  (18)  On  M aorch  30, 1921,  the  preeent  socalled  Transit  Law  (Chap.  134), 
became  a  law  and  on  April  27,  1921,  the  Amendment  thereto  (Cha;>.  335), 
became  a  law.  The  Act  requires,  by  its  Section  106,  that  "  the  Commission  Aall 
eanie  •  vahMtion  to  be  niide  ol  Hie  property,  other  4iani  ^  fnaAmm  at  going 

necessarily  used  in  poMie  service  of  the  lailMda  it  proposes  to  iiKlude 
ftmsiik''  The  Amendment  states,  with  reference  to  this  valnatioii,  "  bat  such 
nalnalioii  shall  not  in  any  case  exceed  the  fair  reconstruction  cost  of  the  property 
less  depreeistion.''  Hie  Vahmtian  Report  states  that  in  its  Report  the  term 
**  reeoostroction  eoat,"  was  held  to  be  synonymoaa  with  "  reproductioa  Mats" 
m  inpldgped  amd  nndeiatood  in  vahuikMs  mi^  Thia  knr  doaa  not  Mm 
lenn  ^  rsoonstmcition  cost," — niiieh  can  mean  only  the  leooiutraetion,  Teoraation 
or  rebuilding  new  of  these  identical  properties  at  current  prices,  according  to 
the  specifications  and  quantities  of  the  existing  properties,  using  reasonable 
diligence  and  meliiods  and  period  of  oonstrueticm  and  aswiming  1^  noiHoM 
enee  mt  wiping  ciit  <if  mhIi  {mfMrtiea. 

ytmifwi|y  fnfl^  ■^liMp—fcjnattniiff  or  iiliBMilei  nf  jflie  ItSit  leooHlnMtini  eoil 
new,  the  governing  con^litions  must  be  those  existing  at  the  date  wlwB  tfie  law, 
passed  March  30,  1921,  took  effect,  which  was  immediately.  Reference  shooM 
also  be  hnd  to  important  pertinent  facta  involved  in  the  oonstniflfcion  hiatoiy  of 

18 


il»  property,  whenever  the  making  of  a  rational  reconetrudtion  cost  estintote  22 
iMraM  ao  req^nie  in  order  properly  to  oonaider  all  f  acMots.  FoU  knowledge  of 
the  conditions  aotnally  met  in  the  o(nistruction  of  the  properties  b^ig  valued 
is  important  in  ascei^taining  quantities  and  in  estimfatmg  oniissi<»is^  ooor 
tingencies  and  other  costs.  Such  costs  must  include  the  reoonstmctioa  costs  of 
recreating  company  surveys,  maps,  profiles,  plans,  specifications  and  other 
reeofdannd  of  Bwwrobling  the  facts  and  data  naed  in  iSbmi  making. 

lie  Bepoi<t  rtatos  diai  the  inventories  were,  in  aill  cases,  made  as  of  June 
30,  1921,  and  that  the  1921  ralnaltion  of  phyaical  {nopeily  ww  based  on  the 
Cost  to  Reproduce  l^ew  at  prices  and  conditions  existing  in  the  first  six  monflis 
of  1921.  The  date  of  the  Act,  March  30,  1921,  falls  in  the  middle  of  such  six 
moniths  period  imimediately  preceding  the  completion  of  the  inventory.  On  its 
own  statfsnpnt,  the  Report  should  theiefoxe  bave  used  prices  current  at  the  end 
iA  Haieh,  1881,  aa  I  have  done  in  my  review  Iheraof. 

The  Act  and  the  Amendment  each  reqaire  that  tiie  vnlnation  include  the 

property  "  necessarily  used  in  the  public  service."  This  term,  "  necessarily  used 
in  the  public  service  "  seems  to  be  synonymous  with  the  usual  term  "  used  or  23 
useful  property."  The  Repofrt,  however,  states  thait  "the  inventory  for  the 
vnhution,  wwb  set  up  by  segregating  the  property  into  operative  and  nonroperor 
<tiw  property"  the  latter  including  principally  bnildiiigs  and  powa>  ^imt  and 
sub^tion  equipment  retained  by  the  companies  hat  not  utilized  in  tfaeopentian 
of  the  railroad."  However,  the  Report  gives  no  rules  for  the  segregation  of 
Pf^rty  into  that  which  is  valued  and  that  which  is  not  valued.  It  is  therefore 
diiMiilt  to  nndevstand  and  to  foUow  some  of  ilts  proposed  classifications.  For 
instance,  the  Repoit  ioehidea  under  "Property  useful  for  operaUon  by  comr 
panics"  both  "property  used  for  operation"  and  "property  not  nsed  for 
operation;"  and  Report  includes  under  "  Nonroperaiing  Property  "  the  "  prop- 
erty not  used  in  operation  by  companies."  This  is  very  confusing.  Considerable 
land  is  listed  nnder  "  property  "  not  used  in  operation.  The  Report  lists  as 
non-operating  property,  eonie  property  that  is  nsed  and  is  neoesaaxy  fw  good 
public  service.  An  instance  is  the  Power  Plant  of  the  Brooklyn  Ci^  TtaiWwfil 
now  used  for  heating  ew  abopi^  hot  lifted  ondar  Bmek^  Bapid  mnnt  noor 
operating  property. 

Property,  whether  or  not  utilized,  is  dlMiMttr  mM  nmpeitr  in 
many  cases.  #  ■■^'T'' 

Used  or  useful'  property  must,  broadly  speakii^,  include  the  following  24 
I»oper^;  property  regularly  in  serviee  in  <iie  ooime  of  operation;  property  not 
i^arly  in  serviee  bat  which  is  needed  or  used  ok  intavfala  vmg  to  wide 

range  in  service  demand ;  property  which  ordinary  prudenoe  end  good  manage- 
ment  deem  essential  as  reserve  capacity  and  as  a  safety  measure  to  protect  the 
8^][we;  pr^rty  which  reasonable  business  judgment  deems  it  necessary  to 
eequire  in  wdvaneeef  inmiediale  needs  beeanse  of  the  greater  economy  of  present 
acquirement  or  for  o4to  reaaons  affecting  the  vMiuate  good  of  ^  eerrioe- 
and  other  pinperlj  and  propeity  rig^  dervdted  to  pahlie  iiaek  ' 
In  this  same  coraiectioD  the  Report,  under  caption  "Conclusions  and 
Recommendations  "  states,  "  it  is  our  opinion  that  there  should  be  included  in 
rodi  valuation  only  the  propei*ty  now  existent  and  suited  for  operation  " 
Wliite1ie«iwnen  wovM  he  wilKng  to  di^oeeof  less  than  aU  of  their  prop^ 


18 


M.  timkmmmml^ aiul <ii<iwitiwi,  Ummm,hmmm,  titai nj foA  pitiil 

or  limited  valnaition  should  equal  ilw  acceptable  Talnation  of  the  entiro  pmp^jj 
in  each  case,  leas  the  salvage  obteinable  by  the  owner  in  dispoeing  elsewhere 
«f  the  property  not  included  in  meh  valuation  and  not  t<aken  over,  i.  e.,  that  a 
21  ptiimi  tnjiig  orij  ulieya  pertii—  ql  Ifae  pwn>ertieB  should  expect  to  pay 
tiwiior  ga^aMoinrtyil  i»  lit  fika  nl  fBbm  min  pniptrty  Im  Ikt 

(20)   Iimloiiia  of  liie  diaraelar  below  Hated  mm  imBed  by  or  on 
bebatf  of  the  BnMkfya  SBilm  Boaaf  Ihe 
Vunation: 

(a)  Imentories  supplied  by  mie  during  the  miiiimi  irf  fall  cf  1981 

of  the  Brooklyn  City  Railroad  Company  property  covering 
"the  property  designated  by  Brooklyn  Heighte  Railroad  as 
being  die  pioperty  <tf  BrooUyn  Oity  Railroad  October  19, 
1919,  mam  b^  iufiitipled  and  dMoked."  Theae  kveik- 
tories  comprised  a  number  of  volumes  of  character  indifflilBd 
by  their  contents  which  included:  track,  special  track 
paving,  land,  buildings,  miscelhmeous  strudfcuree,  shop  eqiip- 
amt  and  niMbiM  tooli»  tnmwijiBBOB  and  distribution  systems 
and  ioliilatiiMii,  pliolcill^i^lMar  ^jM 
ber  of  each  type  owned,  maps  of  feeder  and  trdley,  mape  of 
entire  underground  feeder  system,  imp  of  high  tension  feeder 
syiltem,  inventory  of  high  tension  underground  cable  sy^em, 
inliflation  drawiuA  imrentoiy  of  underground  trolley  feeders 
and  ratonia,  pralMBaiy  invenlovj  «f  «ai«nt  tiwd^  tnA 
bonds,  track  iufwtaty,  oteriiead  ^weial  woA  and  bondingi» 
overhead  conatriietion,  special  vrork,  consents  and  damages 
(being  thjiee  slieetB  of  etreet  locations  of  lines  in  which  fee 
la  In  abnttin|  property  and  in  the  city,  divided  between  bosi- 
nesa  and  tendmoe  ibontage),  rigjits  el  way  eaaements,  mis- 
eeflaneops  equipment,  iiii|wweui^ 
fmnknie  and  fixtmee,  and  miwallHMiMa  eqnipmlBiH. 

(b)  Inventories  of  generally  eimiaar  cbaraeter  and  ioope  aapplied  by 

the  Brooklyn  Rapid  Transit  Company  office  during  ik» 
summer  and  fall  of  1921  of  the  othei;  Brooklyn  Surface  Roadi. 


HI 


PAKT  n 


COMMENTS  ON  THE  ALLOWANCES  FOR  CONSTRUC- 
TION OVERHEADS  AND  COMPANY  OVEBHEADS 
AND  OTHEE  COMPANY  COSTS  FOR  ALL 

PEOPERTIES. 


paut  it 


27 


GBKEBAL  METHODS,  PROCEDTIRE  AND  NOMENCLATURE  USED 

IN  VALUATION  REPORT. 

The  general  neetiiiods  «iid  prooediire  followed  in  tiie  Valuatiom  Report  ate 
oirtimed,  and  tite  nomeiKslaitiue  therein  uaed  m  explained  in  the  tiiree  following 
puagnaplis: 

1.  "  OoNTBAOT  Cost."— As  stated  in  its  Part  3  or  statistical  section, 
which  gives  unit  coet  data,  etc.,  the  Report  adds,  but  only  in  the  case  of  some 
items  (as  is  explained  in  paragraph  "  Unit  Costs  "  of  tiie  transmittal  letter) 
to  the  "  Bare  Oast "  (which  is  therein  stated  to  include  all  charges  for  material, 
labor  and  £oranen)  the  anwunt  of  6  per  cent  for  "  Job  Overhead," — making 
T^iat  k  tlierein  calkd  "  ConaitractioD  Cost;"  to  this  it  adds^  but  only  in  the 

ease  of  some  itenls,  the  amount  of  10  per  cent  for  "  Contractor's  Services,"  

malring  what  is  therein  called  "  Contract  Cost."  However,  in  making  up  the 
estimates  of  "  Contract  Cost "  for  Electrical  and  ]\rechanieal  Equipment  and 
Boiling  Stodk,  the  Reiport  adds  no  ov^bead  but  uses  the  manufacturer's  bare 
a^ing  price  to  the  Compiany,  stating  that  this  price  corresponds  to  the  above- 
mientioned  "  Cohtraot  Cost "  (which,  in  the  case  of  Track  and  Structures,  is 
the  amount  paid  to  the  Contractor  for  the  finished  work,  ri'ady  to  operate). 
In  other  words,  this  means  that  in  the  Report  no  allowances  for  "  Job  Over- 
head "  OT  "  Ccmtraotor's  Services  "  are  included  in  the  Electrical  and  Mechanical 
eqnipmeiit  and  Bolfin^  Stock. 

2.  The  Report  theoi  adds  to  **  Contract  Cost  "  (as  made  up  from  the  sum 
of  l2ie  foregoing  itemia)  certain  estimated  overhead  and  other  ch^irges  to  the 
company;  it  terns  these  "  Company  Overhead  Charges  '*  md  divides  them  into 
**  Expenses  during  Development "  and  "  Expenses  during  Coofttructioo." 

8.  "  CoBT  TO  Repboditcii  "  as  termed  in  the  Report  is  made  up  from  the 
total  of  the  estimated  costs  mentioned  in  1  and  2,  plus  the  Report  valuation 
for  Land,  Right  of  Way  and  Mafterials  and  Supplies — ^in  which  hgt  three  items 
the  Report  includes  no  overhead  or  carrying  costs. 

In  the  pages  hereof  immediately  following  I  give  my  opinions  on  these 
sbomnmed  costs  in  a  statement,  which  applies  to  all  the  Brooklyn  Surface 
Baiboads,  regarding  the  overheads  and  other  additional  costs.  Thereafter  I 
give  in  »Bpararte  statements  for  each  Company,  the  dianges  which  should  be 
made  in  items  and  costs  of  valuations  given  in  the  Yahxaidon  Report  for  1921 
Reconstruction  Cost. 


23 


20  AJTALYSIS  OF  AND  CONCLUSIONS  RESPECTING  ALLOWANCES 
FOR  OVERHEAD  AND  OTHER  ADDITIONAL  COSTS  ENTER- 
mQ  INTO  RECONSTRUCTION  COST-OR  "  COST  TO  EEr 

mmmm  "  as  termed  in  valuation  report. 

Company  Overheads: 

A  company  or  organiaation  reconstructing  the  Brooklyn  Surface  Railroads 
m  1921f  would  have  had  to  paj  costs  for  Company  Overheads  in  excess  of  the 
perontages  md  wmma^  alloirod  in  im  Valaatioii  Report  of  February  15, 
1922.  Some  of  Hitm  «ti  nooM  be  inoatwd  in  cwmectiott  iriflt  rngBdHawt 

in  detail. 

Comiruetion  Overheads: 

A  sinrilar  statement  also  applies  to  the  Con«tructian  Overheads  shown  in 
liie  estimated  Ccmtract  Costs  of  the  Report,  but  in  this  case  the  extent  to  Which 
it  aiipliif  em  coly  be  determined  by  «  ei»ifereiMse  with  the  Valuation  Bureau 
Mlgineere  in  order  to  aeoertain  nimt  iteoM,  nflmt  elmenli  ef  eoet  and  uluit 
■Qmnoet  tb^  incdoded  in  1i»  IWl 

IhfKctation  ef  Omrkmii: 

The  Report  depreciates  the  OowlRietion  Ovtriteada,  and  the  Oon^My 
Overheads.    The  Company  overheads  should  not  be  depreciated  heeanse  Ilie 
creative  engineering,  legal  and  administrative  work  and  the  expenses  of  inaur- 
aneei  taaeeiv  intereit  and  cMfc  of  money,  once  made  are  permanent  and  will  never 
aO  ba  dii]iiifla!tad.  Sonii  of  Ilia  CkMtrnatiim  Oniteda  ipiH  be 

ijaking  renewals  and  replaeeoMnlB,  but  tbia  atetemflnt  doea  not  apply  to  all  <tf 
tbe  CooatnictMA  Qvai^^  or  to  all  i»f  tlka  praperl^. 

The  Report  appears  to  aHow  Construction  Overheads  only  on  Track  and 
Structuree,  made  up  of  d  per  cent  for  "  Job  Overhead  "  and  10  per  cent  for 
**  Oonttaelor^a  Ser^oei "  (including  therein  contractor's  home  office  overhead 
ittd  fmAt).  TbeM,  eonnliined^  amaant  to  10.6  per  ecnt,  which  seems  entiidy 
isiiiqfttate.  My  practice  in  such  wmk  is  to  allow  at  least  12  per  oent  fbr  Jm 
Overhead  and  to  figure  it  on  all  (eioept  Rolling  Stock,  to  which  I  add  3  per 
eent)  in^ltead  of  on  only  a  paH  of  the  work.  The  12  per  cent  is  made  up  of  4 
per  cent  for  Oontractor'e  works  office  coBts  and  8  perx^t  for  all  other  items 
nndar  (a)  and  (b)  of  ^  next  foiowii^  paragrapha.  la  my  opinion  this  12 

per  cent,  80  fignred,  should  be  Qied  in  llieae  ^alnation  iMtaad  of  ^  •  per  00^^ 

as  used  and  fibred.  The  12  per  oent  for  "  Job  Overhead  **  and  the  10  per  cent 
for  "  Contractors'  Services,"  combined,  amount  to  23.2  per  cent.  It  is  neces- 
aary  to  make  proper  aHowances  for  all  incidravtals,  contingencies  and  omi?»9ions. 
Oafy  hj  making  a  atady  and  analyaa  of  mat  prices  with  the  Report  Engineers 
can  one  determine  liie  «Mit  to  vUdb  aaaded  aOimaiMa  lliwiiffiii  luiu  luun 
made  in  the  Report  unit  prices  and  mmk  final  conehianna  regarding  the 
so-called  "Contract  Coat."  Generally  speaking  the  practice  of  individual 
31  engineers  in  making  up  unit  costs  varies  so  widely  as  to  what  items  thev  include 
in  Mr  **  wit  ooata »»  and  what  they  imOnda  in  **  job  overhead  "  that*  only  the 
nariM^'flQ^iract  costs'' can  ptopeity  be  em  Sodi  eoali  nmat  inelndo 
«n  '"jab  vmAmiB"  and  "qnimiitoia'  anrtieea.'' 


**  CoHnuoT  Ooer "  aa  defined  in  lefort  snvt  include  the  following  31 
oonatmetion  ooate: 

(a)  All  itemlB  listed  in  Rqwrt  as  baving  been  inelnded  in 

''Contract  Cost" 

(b)  Ea^reea,  frei^^t^  demurrage,  teleph<me,  telegimpli,  storeroom, 

s^r&ge,  yard,  automobile  hire,  cartage,  rental,  job  lia- 
bility insurance,  incidentals,  extras,  omissions,  mistakes, 
changes,  corrections,  breakage  and  waste,  rehandling, 
temporary  oouiLniutSMi  and  duplication  of  woric,  removal 
of  poor  work,  removal  of  obstructiona  or  mterferenoes, 
excess  cost  of  doing  work  while  maintaining  operation, 
idle  or  overtime  labor,  power,  heating,  lighting  for  night- 
work,  failure  of  8ub^»ntnactors  and  reletting  of  work, 
delays,  alrikee,  aeetdents,  '<  weather  damtage,  disastera, 
miscarriage  of  shipments,  city  inepeetion  and  permits, 
bonds,  fees,  all  other  uninsurable  costs,  injuries  and 
damages  to  persons  and  property,  operation  of  job  shops, 
construction  plant  maintenance,  trial  operation,  con- 
trenitorB*  moAa  oAoe  coali  and  r^uneration  for  oon- 
tracta'  eervieea  fw<!lndii^  tiMnia  }m  borne  office 
ovwliead  costs. 

"  Cost  to  Rspbodvcs  "  as  defined  in  Report  nmiit  iiwlude  the  following  32 
oompany  ooMs:  ^ 

(a)    Company's  Overhead  Costa  During  Construction: 

Intereilt  during  constmetion  <m  all  e^endituree  made, 
incbiding  mterest  on  land  and  rig^it  of  -m^,  taxes, 
engineering,  administrative,  1^1,  etc,  coste. 

Taxes  during  construction,  including  taxes  on  land  and 
right  of  way  and  on  structures,  if  payable. 

Engineering,  design  and  inspection  costs. 

AdminiatiMfctve,  eoDeeotifn,  I^gal  and  office  coste. 


(b)  Company's  Cods  Prior  U  Coadructum:^ 

.  TwBMto^M  remuneration  for  swvices  and  expenses — 
Inelnduig  franefane  and  permit  costs  and  fees  paid 

therefor. 

Administrative,  legal  and  engineering  costs. 

Interest  on  expenditures  made,  including  interest  on  land 

sasA.  rig^  of  way,  prior  to  constmetioo. 
Taxes  <m  knd  and  rigbt  of  way  and  on  etmetniei,  if  pay- 

abie.  (See  Note  on  foltomng  paga)* 

(c)  Cost  of  procuring  money. 

(d)  Company's  Costs  Subsequent  to  Construction: 

Working  capital— including  materials  and  aoppliea,  and 
cash  if  valtied. 


25 


1P||!M«tl  pNfiflf  4mtAofmmii  eotte;  invwitmeiity  pending 
imortiiB^  fmm  mrmngtf  in  mipeneded,  mhtmiaaioA 

or  unmea  property  (or  sometimes  in  property  now  non- 
existent) when  an  unavoidable  cost  of  the  present  com- 
pleted and  improfved  property  thoui^  not  appearing  in 
infliwilorr, 

rmkm  iif  OmtoMte  for  power,  iidfertitiQ&  ete. 

JTof*  ■ffiiwMt  t0  Oraiift  (•)  mJ  (i)  af  pifv  Mt 

l-*«^^!!21!^  '""^  Taxes  on  Land  and  Right  of  Way,  and  Interest  on  Consenta  and  DamagM 
ueurred  pnor  to  construction  are,  for  oonvenience  of  presentation  in  the  tables  of  Part  TiT. 
listed  therein  with  other  Interest  and  Taxes  incurred  during  coBitnwIion.   The  prraMtnw! 

it  irS!fiLr!!ii^  '«  "S**^  •*  *^  pw^tmcUon  period. 

Tlie  following  comments  are  submitted  on  the  four  fmmimg  imiiiiitriM 
of  tlM  eonipMiy  ootts  designated  (a),  (b),  (c)  snd  (d). 


COMMENTS  m  GROUP  («)  OR  COMPANFS  OVERHEAD  COSTS  84 

IWJRmQ  COKSTRUCTION. 


IfUereat  during  Construction: 

Interest  must  be  paid  on  all  money  spent  prior  to  starting  of  regular 
operations,  and  such  payments  are  chargeable  to  Construction.  The  whole 
amannft  of  mon^y  must  often  be  raised  before  the  work  can  be  commenced  in 
ordet  to  insure  against  sosp^iBion  of  constniction  opeiations  from  lack  of  funds. 
Even  under  the  mott  fayocable  oonditioos  iM  the  money  wamt  be  raised  eoQ- 
•iderably  in  advance  of  its  aopenditom 

The  total  Interest  Cost  differs  ftom  many  other  overliead  eoite  in  tiiat 
the  rate  of  interest  payable  depends  npon  financial,  business  and  money  market 
conditions,  the  nature  of  the  enterprise  and  the  security  of  the  investment.  The 
interest  payable  depends  upon  the  interest  period,  i.  e.,  either 
upon  the  avenise  ooortmctioa  period  or  the  average  period  between  the  raising 
of  tiienmiqraiidtfiefltuitii^of  opovlioa. 

The  interest  rede  will  be  at  least  the  pravaUiiig  rate  and  wiH  generaHy  be 

more  than  the  rate  required  when  the  company  is  in  snooessfal'  operation.  In 
determining  the  proper  interest  rate  it  nmst  be  remembered  that  all  loaned 
capital  participates  during  construction  in  the  risks  of  the  enterprise,  and  must 
be  figured  at  a  higher  rate  than  on  loans  to  a  well  secured  property  having 
established  credit  and  ample  earnings.  Any  organizatioii  constnieting  or  reoon.-  35 
structing  the  Brooklyn  Surface  Roads  would  have  had  to  pay  for  construction 
money  an  annual  interest  rate  of  at  loa*t  8  per  cent,  because  a  lender  advancing 
money  for  construction  would  consider  the  hazards  and  risks  of  a  loan  on  an 
unimiH  project  For  iiuB  ream  lie  would  not  lend  monev  for  less  than  8  per 
oen*  flat,  or  at  6  per  oent  phis  a  loan  eonaniBsioiL  ranging  from  2  per  oent 
upwards.  Such  loan  commiseions  in  1921  were  generally  at  leatt  double  this 
figure,  which  would  mjake  the  actual  iuteroEtt  rate  "w^  orer  8  per  eent,  niiidi  is 
the  rate  I  use  herein. 

It  should  be  noted  that  the  subscribing  underwriters  do  not  usuallv  put 
up  aU  the  money,  bn4  oonmKmly  secure  most  of  it  by  a  loan,  backed  by  the 
subecnber's  credit  and  his  deporited  seeurities.  Th»  method  is  that  subscrip- 
tions are  secured  equal  to  llie  estimated  overall  coet,  the  subscribers  puttii 
up  as  collateral  for  their  loan  the  bonds  allotted  to  them  (usually  at  a  dimmnt) 
mth  a  trust  company  or  banker  which  agrees  to  advance  to  the  company,  on 
Joan,  most  of  the  amount  of  the  subscriptions,  the  balance  of  the  cash  needed 
bwng  leiit  direct  by  the  suhscribew  Aemhel^  The  eash  is  then  advanced  to 
the  company  either  in  one  block  or  from  time  to  time  as  needed  for  oonstruetiou 
expenditures,  fuM  legal  interest  being  charged,  plus  a  substantial  oonm^on. 
f^aloan  for  a  given  period.  If  the  loan  is  not  paid  off  at  maturity 
additml  oomlmMflon  w  usually  charged  for  renewing  it  for  an  additional 
penod  M^nwhie  eiorts  are  made  to  ee»  the  hoods  to  investing  pubUc 
through  banking  houses  and  their  distributing  houses.  If  a  gooi  mariSt  exists  36 
and  Ihe  bonds  are  sold,  the  net  pzooseda  are  d^tod  iviiit  die  lending  oompany 


27 


ae  «Bd  ^gaint  «e  loui.  H  Uie  bort  ma**  i.  paonni  A,  bonds  «m 

not  readily  «,Id  the  ™tooribe»  W  to  w  off  the  l<S!«!Z£m^tSl 

«e«ii^do ih«  fteir  loai»  have  to  be cloeed  out,  in  «me  cases  the  lender 
h^Sottgrf  to J4.  oif«  «id  cany  «ieh  unsaleable  collateral.    For  these 
mtarnt  Hto  «a  long  mi»  to  goMtrMifam  projeoto  modi  exceed  thoee 

S^i^ttl^*-  "ZW  "  ""l^^'  --1  «e  not  used  «  coSl^STk^ 
Sl^JfSJf!  y*^*?*"  l*"""**  *e  inyesting  public  wflTS 

^mVbL^^^Lr?*2L"^r5  »to  «!otb  the  amount  paid  out  per 
g™m  m  boiri  «oq».  ajnded  b^r  O.  Hunt  «f  «t  «■*  i^Sized  W 

™»a^!^!Lif!r?*'  computed  from  Ae  time  the  mean  ii  ntod 

SSdTSfSffcB"  The  least  r^e  in^ 

Sit  or  .11  of  ty^^^^zsT:^^^^::^^ 

to^se^v1SSSZ2T£S  "If  "J^™  "■"•^^t  condition,^  2 

V  f?  "y, »»"n>«>«««  MfaocB  jitniiad  ID  bok  and  normaUv  rntnr,..  •  w 
one-half  of  the  intere*  rate  pud  «mfbr.   •n»t^^«S  ^^11 

Mm  mfrnm.,   MM  CMMiy  M  whm  Securities  are  sold  to  Dron'^lp  all  f^^^A^ 

li^TiXZ^  clean.,  up  tl« 

iii.iiiSSr'!Sl?£!^^^  ■  ""i*^  AwgniM  and  draf tinir 


m 


connection  therewith  in  the  design,  location  and  construction  of  the  property, —  3g 
inciudiiig  the  f<umi»hing  of  plana^  specifications  and  superviaion  of  the  con- 
tractor anid  Ua  orgamzatioii,  in  Aott,  all  encplaeering  woric  and  services  not 
included  in  construction.    The  expenses  under  tbu  geomvJ  liead  during  the 

construction  period  would  range  between  3  per  cent  and  4  per  cent  of  the  fall 
constructjpn  cost  including  therein  the  job  overhead  and  the  payment  f<w  ooo- 
tractors'  services.  I  use  3  per  cent  herein. 

Administrative,  Executive,  Legal  and  Office  Costs: 

These  costs  represent  expenditures  for  suitable  executives,  company  staff 
and  office  forces,  including  the  requisite  legal  depaxtment.  This  company 
oirganisatum  waM  carry  the  project  through  to  eomplefcion,  controUing  and 
directing  the  performance  of  all  purchases  and  construction  work  not  indaded 
in  the  contractor's  work;  dealing  with  local  authoritiee;  handling  legal  and  39 
financial  and  otlher  negotiations  in  connection  with  the  prosecution  of  the  con- 
striiGti(m  woik;  and  caring  for  all  the  interests  of  the  company  and  its  enter- 
prise up  to  Ae  eooopletMMi  of  oonstaietion  and  the  taming  over  of  the  completed 
system  to  the  operating  oiganization.  The  expense  oiider  tfiia  general  head 
during  the  construction  period  would  range  from  2  p«  cent  to  3  per  cent  of  the 
fair  construction  cost  including  therein  the  job  ov^ihatd  and  the  ooutiartora' 
services.  I  use  2  per  cent  herein. 

Fire  Insurance: 

Business  prudence  would  necessitate  the  carrying  of  fire  insurance  on  a 
munber  of  constmcti(HL  items  including  buildings,  power  plant  and  substation 
eqfoipinent,  roUiiig  etoek  and  possibly  othen.  The  rate  for  such  insurance 
wooM  be  not  less  tlhan  0.4  per  cent  per  year.   It  woald  be  payable  lor  at  leaat 

one  year  on  the  insurable  portions  of  buildings  above  foundations,  and  power 
plants  and  substation  equipment,  and  for  at  least  three  mionths  on  rolling  stock. 
Computation  shows  that  this  item  would  amount  to  at  least  .05  per  cent  of  the 
OoBtnet  cost  (esdiisive  of  land  and  rig^t  of  way),  whidh  figure  I  have 


40  OOMllENTS  ON  GROUP  (b)  OR  COMPANY'S  COSTS  PRIOR  TO 

CONSTRUCTION. 


Thm  Rcffvrt  inehidM  nottang  lor  Hhern  pramoCion  ooete,  wk&A.  are  ahmji 

iuBonred.  They  inclTide  payment,  customarily  made  in  cash  or  securities,  for 
services  and  disbursements  of  those  who  conceived,  created,  organized  and 
bpoaght  about  the  construction  of  the  enteiprise;  foimd  and  interested  the 
feo^  hImi  agreed  toaopply  the  moiMgr;  and  promoted  ila  inteveate  to  Hhe  poiiil 
wkem  ita  eonstruetMHi  wm  aetnaUj  unidertaken.  Haj  ako  include  pireliiBmBiT 
expenses  of  the  company,  before  construction  commences,  for  neceasary  lega% 
administrative  and  engineering  costs;  and  include  the  carrying  costs  of  intereit 
and  taxes  until  construction  begins.  The  first  item  includes  expenses  incurred 
and  a  reaaonaye  profit  payalde  to  lie  pramotan  upon  tiMir  i^Iity  to  eoneeive 
and  initiate  tiie  eaeentioii  of  ^  fra|eet  If  mlBkea  no  diiEvenoe  whether  thea% 
if  reasonable,  are  made  in  cash  or  in  securities.  The  work  paid  for  includea 
the  organization  and  development  of  the  plan  and  the  interesting  of  the  public, 
bankers  and  others  having  capital  to  supply.  8uch  payments  are  imavoidable 
if  liua  oealife       la  to  ie  dm  and  tlw  eoanin^ 

and  iafwtion  wiU  atopi.  The  patent  law  reeogniaea  thia  by  aaaoxiag  ean|Mtt- 
aation  to  liw  iiif«Btor     oibffiiiV  Ua  tlie  proapeots  of  re^ 

41        These  1931  eombined  pre^oaBtnietion  eoati  ivooM,  {<«  tiie  reaaons  below 

given,  undoubtedly  run  from  5  per  cent  to  10  per  cent  of  the  re-construction 
ooet  of  diese  roads.  In  amount  they  would  total  not  less  than  0  per  cent  of  the 
Contract  Cost  plus  the  pre^onstroction  cost  of  Interest  on  Land  and  Rigkt  of 
Wgr,  CbMMtonid  BamagM  and  of  Taaei  on  Land  and  Bi|^i of  Way.  I  vae 

To  eapiain  forlher  Hwae  eoata  liitod  nnder  Qnmp  (b)  I  iiuwrt  ^  loUow* 
huf  pturfiimA  fafomeaas 

Aeeotding  to  die  Pnblie  Senrioe  Commiseion  oi  New  Tofk,  First  Distfiei^ 
in  opinion  and  order  dated  June  23,  1911,  in  Queensborough  Gas  and  Electric 
case — "  There  are  certain  expenses  connected  with  every  undertaking  which  are 
not  represented  by  physical  prc^rty  but  which  nmst  be  incurred  before  the 
plant  ia  operated.  Tliaae  VMte  to  Ike  initial  pmno4ioB  of  tibe  aohme  and 
^  Qfganiaatioft  ol  tiie  Oompany.  Inveaton  ntoat  be  inteieited,  lawyers  and 
engineers  must  be  consulted,  and  frandiiiea  and  permits  must  be  secured.  *  *  * 
The  foregoing  items  of  valtiation  do  not  ♦  ♦  •  make  any  allowance  for 
franchise  values  nor  for  a  considerable  amount  of  development  expense,  as  for 
eami^le,  reaaonaUe  ptofite  of  protnoting  the  enterprise,  prdindnary  legal 
mpmtm  «i  oiganiaation  and  oilier  l^gal  preliminaries,  cost  of  eoapMaig  wMi 
various  preliniinary  requirements  of  law.  All  of  these  itann  wmn  be  .abso- 
Intely  essential  disbursements  in  the  reproduction  of  any  existing  railroad.^' 

Simdlarly  the  Second  District,  New  York  Commission,  in  decision  March 
30,  1908,  in  the  Rochester,  Coming,  £lmira  Traction  case  allows  "for  the 
121  lerfieea  of  liow  engaged  in  oiganisiqg  Hie  enteruriae  anoHier  6  per  oent  npott 
iSkm  eatimaied  eoat"  SimHaii^  Hie  YalnaiioB  Sifineeta  of  tiia  lf«w  lotk 


Urat  District  Ocnmnieaitm  in  Coney  Island  and  Brooklyn  Company  case  1134,  42 
Sept  15,  1909,  testified  tliat  dieie  ahoaM  be  inoloM,  in  nddition  to  Hie 

physical  property,  legal  expenses  in  connection  with  pidiminary  promotion, 
organization  and  incorporation  of  company;  technical  expenses  in  connecticm 
with  preliminary  survey  and  location  of  line,  estimates  of  cost,  estimate  of 
earnings,  preparation  of  prospectus,  maps  for  property  owners'  consents  and 
consents  of  kwal  andiarities;  promtotian  expenaei;  ooet  of  <nganiz«tion  prior  to 
actual  construction ;  profits  of  promotion,  inehiding  original  <nganaation  and 
consolidation,  5  per  cent  to  10  per  cent,  etc. 

The  Wisconsin  Commission,  in  the  Antigo  Water  Case,  Aug,  3,  1909, 
states:  "  Owners  and  promoters  are  undoubtedly  as  much  entitled  to  &ir 
compensation  for  Intimate  and  valnable  services  as  anyone  else." 

The  Bailroad  Secorities  Conmiission,  in  ito  ItU  Report  to  the  Presi- 
dent, states: 

"  The  promoters,  using  the  term  in  a  broad  sense,  may  be  divided  into  two 
classes ;  constructors  who  build  a  road  whose  future  is  uncertain,  in  the  ei^ee- 
tetion  of  selling  the  stock  for  more  than  it  cost  them';  and  financiers  who  induce 
Oe  public  to  buy  the  bonds  of  such  roads.  Both  of  these  classes,  if  they  do 
ilia  woA  honeedy,  render  naefol  aerrioea  to  tbe  pabHc.  The  constructor  gives 
our  undeveloped  districts  the  boMfit  of  new  totOt,  wUoh  Oaw-  wodd  not  get 
wiHioat  hcia  intervention.'' 


SI 


43     COMMENTS  ON  GROUP  (c)  COST  OF  PBOCURtNG  MONEY. 


Tio  «oat  iif  immaaag  or  of  leniriiig  eonalnielioii  mcaugr  Iim  noliiiiig  to  do 
witii  interest.   It  is  undravettiBiatod^  st  leaat  for         in  ikt  Beport»  nhiah 

mm  8^  ftr  wnt  for  the  original  cost  valuation  and  5  per  cent  for  the 
lil(K-1914  umI  1021  reoonatruction  cost  valuations.   Such  allowance  must  cover 
•M  brokerage  and  uiulnrwriting  charges,  the  services  and  expenses  of  banking 
iMiiiMt  and  of  Ihmr  aeeiiritj  diatmbating  houaes,  and  tiw  expanaea  of  tile  oom- 
pany  inourred  in  lliis  connection,  L     it  nmat  paj  the  undeniTiter,  the  banker 
purchaser  and  the  distributors  of  the  leoiirities  sold.    In  amount  it  is  equal 
to  the  difference  between  the  amount  llie  investors  pay  for  the  securities  and 
tke  net  amount  of  cash  received  therefrom  by  the  company  after  paying  its 
own  share  of  tiMse  eoiiB,  i^iioli  inelndo  the  printing  of  securities,  prepamtion 
and  Mag  of  mortgages,  aloQk  tax,  oompmsatioii  of  tmataaa,  and  tiiiitew' 
counsel,  etc.    The  Report  appears  to  be  in  error  in  AiimTning  ^^f.  the  monej 
would  all  be  raised  by  the  sale  of  bonds  or  prior  lien  securities,  as  at  least  one- 
third  would  probably  have  to  be  raised  by  the  sale  of  junior  securities.   It  is 
n^  opinion,  based  on  my  experiMiee  and  thai  of  wtj  firm  and  of  corporations 
which  I  am  connect  that  iie  aelnal  coat  of  pnblie  vtiHty  mauBj  ndaed 
by  iStie  sale  of  bonds  of  profitable  going  comipames  would  run  from  6  per  cent  to 
6  per  cent,  while  the  like  cost  of  that  raised  by  the  sale  of  junior  seouritiee, 
44  would  range  from  8  per  cent  upwards.   The  average  cost  of  so  procuring  money 
weiid  eertaioiy  eaeeed  6  per  cent  and  would  probably  be  7  per  cent  These 
peroentages  are  loiMr  than  woaM  he  aifad  for  etveel  raihmy  aeenritiee,  and 
especially  for  thoie  of  a  construction  enterprise.  They  also  assume  the  existenee 
of  more  favorable  mlarket  conditions,  company  credit  and  city  authorities'  atti- 
tude than  prevailed  in  1921  or  than  now  prevail.   Under  1921  conditions  the 
cost  of  1Mb  money  would  almost  neoeasarily  have  been  more  than  7  per  cent, 
Inehidiiv  boih ''lamken' spiead'' and  eoota  to  eoB{ttny  thflN^    It  ad^t 
not  have  Imn  securable  at  10  per  oent  or  16  per  cent,  lor  tibe  inmeliBg  pubHo 
which  constitutes  the  only  continuous  source  of  money  supiyiy  now  considers 
proven  risks  of  investing  in  traction  enterprises  and  believes  that  it  has 
BO  aaannnee  of  reeeiving  fixed  and  permanent  returns  .on  investments  made 
in  street  nUimy  securities.   Tliey  oounqiiently  pass  ttaa  ovor  in  &Tor  of 
more  reliable  and  productive  investment  opportunities;  tios  atefcement  is  e^e- 
eia%  applicable  to  New  York  City  surface  tranaportatibn  systems.   These  are 
nignlated  as  to  earnings  but  are  not  protected  therein.   The  testimony  of  bankers 
ahonld  be  helpful  in  ascertaining  the  risks  they  take  in  buying  such  securities 
and  tiie  laela  aa  to  tfie  fareeBtofe  wiiidi  nmat  Be  taken  for  the  cost  of  money. 
I  am  anie  that  6  iper  cent  of  the  total  of  all  other  coats  and  iiii  wWh  k  the 
least  percentage  that  can  properly  be  figured  and  have  used  it  in  my  estimates. 
The  brokerage  and  other  like  company  cost  items  entering  into  the  cost  of 
procuring  construction  utoney  would  have  to  be  paid  When  construction  begins. 


COMMENTS  ON  GROUP  (d) :   COMPANY  S  COSTS  SUBSEQtJEHT  AR 

TO  CONSTRUOTION. 


Working  CapUd: 

The  ^poirt  allows  for  and  includes  floating  capital  as  determined  by 
mventoiy  of  Materials  and  SuppKes,  but  inchides  no  allowance  for  cash  working 
capital.  I  %mre  adhered  to  the  same  piocednre; 

Physical  Property  Development  Costs: 

The  Report  does  not  allow  for  physical  property  development  costs  or  for 
cost  of  experimentation  or  changes.  These  costs  include  expenditures  for  street 
woi*,  grade  changes  and  otfier  woric  done  at  the  instance  of  public  authorities, 
or  for  other  causes,  of  which  work  no  physical  eridenoe  now  existo  and  whkh 
therefore  cannot  be  'ascortained  from  an  inventory  of  the  praperty  taken  at  tiiis 
time  nor  from  other  souro<^s  exoopt  company  or  praaonal  leeotds  or  the  reool^ 
lections  of  those  who  were  engaged  on  such  work. 

Costs  to  Create  the  BuJiiness: 

ii^POTt  allows  nothing?  for  expenditures  nUade  to  create  and  develop 
^twwness.  It  deals  only  with  the  costs  of  reconstructing  the  physical  prop- 
orty,  wiunea^  the  company  property  owned  and  proposed  to  b^  purchased 
comprises  both  its  physical  property  and  its  attached  hasineaa.  The  estimates 
of  cost  of  reconstruction  assumes  that  tihe  physical  property  is  wmed  out  and 
then  reconstructed.  In  addition  to  such  costs,  other  large  expen^tores  would 
l^^^tely  have  to  follow  to  reconstruct  or  recreate  the  existing  coo^tiTe 

Value  of  Contracts  for  Power,  Advertlnng,  etc.: 

xJi!  includes  nothing  for  the  value  of  the  power  or  the  advertising  ' 

ojmtra^  ^ese  ue  m  a  measure  a  corollary  of  openation  and  call  for  con- 
sideration; tfa^  mi^t  be  dealt  wiA  in  Earnings  Valuation.  The  Report  inves 
no  estimates  of  valuation  for  the  existing  contraete  in  tfie  form  of  ^^nmlises 

(or  franchise  value),  which  term  is  assumed  to  mean  the  present  worth  of 
future  earnings  under  existing  conditions  and  under  contracts  wherein  the 
JJ^P^**         *  perpetual  franchise  for  the  greater  part  of  the  mileage  of 


33 


PART  HL 


BBVISION  OF  VALUATION  FINDINGS  OF  THE 
VALUATION  BUREAU  FOR  1921  BECON- 
STRUCTION  COST  NEW. 

THE  NASSAU  ELECTKIC  RAILROAD  COMPAOT. 
THE  CONEY  ISLAOT>  AND  BROOKLYN  RAILROAD  COMPANY. 
BBOOKLYN,  QUEENS  COUNTY  &  SUBURBAN  RAILROAD 

COMPAiNY. 

SOOTH  BBOOKLYIN  EAILWAY  C0MP13TY  AND  LESSOR 

COMPANIES. 
THE  BROOKLYN  HEIGHTS  RAILROAD  COMPANY. 
CONEY  ISLAND  AND  GRAVESEND  RAILWAY  COMPAiNY. 
THE  BBOOKLYN  CITY  BAILBOAD  COMPANY. 


PART  HI  47 

aiVlSIOJf  OF  VALUATION  FINDINGS  OF  THE  VALUATION 
BUKEAU  FOR  1921  RECONSTEUCTION  COST  NEW. 

Herein  are  given  statements  applyi'ng  to  the  VBlnalioiiB  of  the  property 
of  each  of  the  Street  Surface  Railroads  of  Brooklyn. 

In  these  statements  the  Valuation  Bureau  Report  Inventory,  with  1921 
prices  undepreciated,  is  used  as  a  basis  and  the  method  of  analysis  set  forth  in 
the  foregoing  sections  of  this  Review  is  applied  thereto. 

For  each  of  the  Ccnnpiiiies  aeptrate  statemebts  in  tabular  form  are  herelA 
given  as  follows: 

8iaimi%mii  1: 

Comprises  Tables  I,  II  and  III  which  contain  sanunaries  of  the  values 
obtained  by  using  the  Inventory  and  Unit  Prices  of  the  Valuation  Report, 
except  as  otherwise  stated.  Additional  Construction  Overheads  are  thetti  applied 
thereto  in  order  to  arrive  at  a  revised  "  Contract  Cost."  To  this  revised  Con- 
traet  Oost  are  then  applied  rerised  Overhead  Charges  to  the  Company " 
tfans  reaching  a  revised   Beeonstnieti<m  Cost  New." 

BiaUmmii  H:  4g 

Shows  details  of  the  oompfatation  of  the  revised  overhead  charges  to  the 

Company,  based  upon  the  revised  Contract  Cost  of  the  property  classified  in 
the  Valuation  Report  as  "  Operating  Property."  See  Table  I  of  Statemoit  1. 

Statement  3: 

Gives  the  computation  of  the  revised  "  Overhead  Charges  to  the  Company  " 
figured  on  the  Contract  Cost  of  the  property  classified  in  the  Valuation  Report 
as  "  Non-operating  Property."   See  Table  II  of  Statement  1. 

Statement  J^: 

Shows  the  Shortages  in  the  Valuation  Bureau  Inventory.    See  Tihie 
in  of  Statement  1* 

Statement  5: 

Gives  the  computation  of  Overhead  Charges  to  the  Company  based  mm 
the  Oontraet  Cost  of  the  l^ortages  shown  in  Statement  4.  See  Table  IM^ 
Statenumt  1. 

The  following  summary  gives  the  results  of  these  revisions  of  the  Valnft- 

tian  Report  figures  includino^  therein  all  property,  both  operating  and  mm- 
operating,  as  shown  on  Statement  1  for  each  Company: 

The  Nassau  Electric  Railroad  Company  ^  $34,318,249 

The  Coney  Island  and  Brooklyn  Railroad  Company  1CJB43.385  AQ 

Brooklyn,  Queens  County  &  Suburban  Bailroad  Companv  !4.tlff*4gS 

South  Brooklyn  Railway  Company  and  T—wr  OoBpmUM   1^127  009 

The  Brooklyn  Heaghts  Bailroad  Company   2  183  338 

GoMjr  Maud  4  wavw— d  Balhrmy  Company   iser'AAi 

Tit  Braokljra  OHy  Bailvoiid  OoiVimf    9^f%i 


87 


EzvLANATioir  om  Statzmxnts. 


i9fal0iiMii<  1. 

TABLE  I  of  mB  StetrawBt  gitw  the  propertj  elMnfied  in  the  Tnamt 
Commission  Valiist«»  Beport  it  ''  OperttiiiK  Pxoperty  1921  Prices 

Undepreciated.'' 

Column  (1)  giyes  the  Valuation  Bniemi  fiadiugs. 

CSoliimn  (2)  shows  the  multipliers  applied  to  Column  (1)  hased  on 
the  increased  percentages  for  Construction  Overhead  as  set  forth 
ill  dtotail  in  the  body  of  the  Review.  For  example,  under  "  Tracks 
and  Stmokofw "  ^  deBominator  of  the  fracdon  116.6  is  the 
CDmulative  Constrnetioii  Overhead  used  by  the  Vehwtion  Eeport 
representifng  6  per  cent  for  Job  Overhead  and  10  per  cent  for  Con- 
tractors'_  Services.  The  numerator  of  this  fraction  123.2,  is  the 
oomnlative  Constmetion  Overhead  as  revised,  representing  12  per 
eeiit  Ibr  Job  Overheed,  omiflsioiit,  et&,  and  10  per  eent  for  Con- 
tractors' Services.  The  fraction  itself,  expressed  decimally,  is 
1.0566.  Under  Electrical  and  Mechanical  Equipment,  the  de- 
nominator 100  signifies  that  the  Valuation  Bureau  used  no  con- 
stmolion  oveiliead  on  tiieae  items,  whereas  the  revinon  shows  88.9 
per  cent,  i.  e.,  the  same  as  for  "  Track  and  Straetores.**  tTndor 
"  Rolling  Stock "  the  Valuatiom  Bureau  used  no  Construction 
Overhead,  whereas  3  per  cent  is  used  in  the  revision  thereof. 

CSoIumn  (3)  down  to  "  Contract  Cost "  shows  the  result  of  applying 
revised  Construction  Overheads  to  the  items  of  Column  (1).  Be- 
loir  ''Oontraet  Oost"  are  gim  the  "Overhead  Charges  to  the 
Companj,''  of  which  the  detail  is  shown  in  Statemeoit  11;  ahw 
Materials  and  Snp^es  and  the  revised  yaloalion  of  Land  uid 
Right  of  Way. 

TABLE  II  of  Statement  T  shows  the  property  classified  in  Talvation 
Beport  as  "  Non-Operating  Property  1921  Prices  itndepreciated." 

Column  (1)  gives  the  values  as  set  up  in  the  Valuation  Report. 

Column  (2)  contains  the  revised  Overhead  Percentages  explained 
under  TaUe  I. 

Gaknin  (8)  down  to  **  Contraet  Gost,"  gives  the  result  of  applying 
the  revised  Construction  Overheads  to  the  items  of  Cohnn  (!)«. 
Below  "  Contract  Cost "  are  given  the  Overhead  ObaigBS  to  ih^ 
Company,  as  set  forth  in  detail  in  Statement  III. 

TABLE  III  of  Statement  I  gives  the  Shortages  in  Valuation  B^rt 
Inventory,  stating  shortages  in  quantity  and  using  the  Valuation  Report  prices 
for  the  same  quantities,  except  where  otherwise  stated.  The  details  of  these 
items  (as  shown  in  Statement  IV)  listed  below  the  caption  "  Contract  Cost " 
are  gim  in  ik»  ''Overiiead  Ohufes  to  the  Company  "  computed  on  smsli 
ShmtigeB'  in  Imeniofy. 


88 


Statement  II. 


Herein  are  stated  the  details  of  computations  of  the  "  Overhead  Charges 
to  the  Company  "  as  contained  m  Column  (3)  of  Table  I  of  Statement  I. 

auOemeat  II L  52 

Herein  are  stated  the  details  of  computations  of  ''Ov^head  Charges 
to  the  CoBpany  "  as  contained  in  Column  (3)  of  Table  11  of  Statranent  I. 

Statement  IV. 

Herein  are  stated  the  details  of  Table  III  of  Statement  I  down  to  "  Con- 
tract Cost "  and  the  details  of  the  Shortages  in  Inventory.  In  this  compila- 
tion the  Valuation  Report  Inventory  is  taken  as  a  basis  for  the  various  items 
of  property,  and  compared  with  l3ie  Sorfaoe  Line  Company's  Inventory  and 
tiie  shmrtage  in  quantity  is  noted.  To  this  shortage  in  quantity  is  then  applied 
the  average  prices  used  in  the  Valuation  Report,  thus  obtaining  the  "  Con- 
tract Cost."  To  the  resulting  values  are  added  revised  "  Ccnstruction  Over- 
heads "  as  set  forth  in  Column  (2)  of  Statement  I.  In  items  of  property 
whereiB  the  Vahiation  Report  gives  no  quantities,  only  the  shortages  in  value 
are  shown.  No  OoBStroetion  Overheads  "  is  applied  to  Ihese  shortages  in 
value. 

Siakmeni  F.  53 

This  gives  the  details  of  the  computation  of  the  **  Overhead  Charges  to 
the  Company/'  based  upon  the  shortages  in  value  stated  in  Statement  fV. 

8UMMABY  TABLE  OF  OMISSIONS  OR  8H0BTAGE8  IN 

VALUATION  REPORT. 

A  Table  summarizing  in  part  the  Omissions  or  Shortages  in  the  Valua- 
tion Report  is  annexed  hereto,  immediately  following  Statements  I  to  V  of  the 
Brooklyn  City  Railroad  Company.  This  summarizes  the  Omissions  and^or 
Shortages  listed  in  the  foregoing  tables.  It  diould  howevw  be  noted  Aat  Ease- 
ments and  Cuts  aadte  Fills  hive  not  been  ImciudiBd  in.  ik»  list  ol  ShiKtagea 
in  this  Review. 


89 


Hi  Consents  and  Damages. 

In  the  case  of  the  Brooklyn  Surface  Roads  the  unusual  condition  exists 
tlial  in  a  great  numher  of  streets  where  car  lines  operate,  the  abutting  prop- 
erty ownen  hold  tlie  f ee  in  the  street  Thia  eoaditioii  obtains  in  practicaUy 
all  streets  that  were  officially  opeaied  htiomUkii  year  1898.  Ita  streets  opened 
subsequent  to  that  date  the  fee,  in  many  instances  is  in  the  City,  subject  to 
the  rights  of  the  railway  company  where  .it  secured  am  easement  from  the 
originai  property  owners  before  official  opening  of  the  street  was  made. 

For  the  pnrpOiSB  of  ibis  Beriew  a  diiriilM  has  been  made  between  the 
eiMt  of  Oomti,  and  the  ezpcndituret  for  Dami^ 

Ctaiimft  of  die  abnttii^  property  owners  nnnt  be  aeeued,  im  all  cases,  if 
a  street  railway  company  wishes  to  constmet  a  railway,  ib  ease  of  dw  franfr- 

age  whose  title  goes  to  the  center  of  the  street,  it  must  secure  from  the  prop- 
erty owners  the  right  to  burden  their  fee  with  the  operation  of  the  street  rail- 
way.  This  eoadition  lias  resolted,  in  certain  instances,  in  materially  larger 

^  eraenditnres  itt  otdsr  to  seenie  the  to  opsrate  Oe  atnel  railway  tiutt  is 
iHrdinarily  the  case  where  the  streets  are  public  property  held  in  fee  by 
city.  In  case  a  street  is  held  in  fee  by  the  city  it  is  necessary  for  the  company 
to  secure  a  franchise  from  the  city  in  addition  to  so  securing  the  consents  from 
^  property  owaen.  UioniettioBably  in  the  recouslruction  of  the  Brooklyn 
Sorf ace  loBCi     eosla  of  OoMCBts  and  Bunagsi  wwJd 

The  cost  of  obtaining  Consents  has  been  applied  to  the  entin  iiirfiwe  line 
mileage  not  owned  in  fee  by  the  railroad  compattiies.  The  unit  cost  per  mile  of 
street  has  been  computed  on  a  record  of  the  expenditures  made  in  the  case  of 
<he  Ifassau  Electric  Bailroad  in  obtaining  Consents  of  property  owners  in 
im  OB  Iivi«ptoB  Stieet  and  l4il||«tte  AvemM.  TUi  expense  covered  the 
cost  of  salaries  and  expenses  of  canvaiMriy  leeoardiBg  Ooosents,  tax  maps,  filing 
of  certificate  for  extension,  money  paid  to  property  owners  for  Consents,  and 
expenses  in  connection  with  the  advertising  and  the  printing  of  the  applica- 
tion Idr  feinfiiise.  On  account  of  the  subsequent  increases  in  costs  in  salaries, 
pater,  pnipvly  vakes  and  aU  ei  ^bem  niwiiiiiHi  trfM  eater  faito  tiie  seeor^ 
■m§  m  such  Comsents,  that  similar  costs  to-day  wwld  be  from  50  per  cent  to 
100  per  cent  above  the  costs  in  1907 ;  however,  as  a  basis  of  determining  the 

66  S'^^      Consents,  only  the  actual  money  paid  in  the  Livingston  Street  and 
I«%i*t»  Ammm  mm  was  takm,  which  was  at  the  rate  of  $3,460  per  mile. 

Ikmaget  ham  beai  eompated  for  the  street  mileage  in  which  the  fee  owner- 
•hip  of  Hiiel  dooi  not  he  in  the  eity.  In  Ais  cmo  the  fee  ownership  of 
the  street  Hjjililly  lay  in  the  owners  of  the  abutting  pnipcrty  and  la  many 
cases  still  lies  in  the  present  owners  of  the  abutting  property.  Doe  to  thia 
owmership  of  the  land  in  the  street  by  the  abutting  property  owners,  the  com- 
jpaaieB  bra  to  pay  comparatively  large  Damages  to  the  abutting  property  owners 
in  certain  esMa  be€ne  they  were  allowed  to  proceed  with  tiM  eonstroction  of 
the  surface  lines.  As  a  basis  for  estimating  the  Dami^  1^  wodd  have  to 
be  paid  in  the  reconstruction  of  the  properties  it  has  been  assumed ;— first,  that 
only  nominal  Damages  would  be  paid  in  the  case  of  business  property,  these 
dasMgea  h«vii|g  been  taken  oa  a  basis  of  a  payment  of  $100  per 
lot  (tAng  a  20  &ol  liesrtage  ••  a  lot)  lor  eaoh  caae  lAsm  Dimages  w^ 
claimed  and  sustamed ;  and,  seeoad,  that  snch  BuBifii  woald  bo  wiliincid  ia 
esse  of  10  per  cent  of  the  bnnaMt  franti^ 


In  case  of  such  Damages  applying  to  rcsideince  frontage  the  experience  in  57 
the  case  of  Union  Street  residence  frontage  has  been  taken  as  a  basis.  In  Union 
Street,  with  a  total  street  length  of  slightly  over  two  miles,  the  total  Damages 
paid  amounted  to  nearly  $40,000  of  irfiich  nearly  $3,000  was  paid  to  owners 
of  business  frontage,  leaving  sli^tly  over  $37,000  paid  to  ovmers  of  resi- 
dence frontage.  Practically  90  per  cent  of  this  street,  or  1.94  miles,  is  resi- 
dence frontage.  Distributing  the  entire  amount  of  Damages  paid  o»n  account 
of  residence  frontage  over  the  total  residence  mileage  of  1.94  miles  shows  a 
cost  per  mile  for  Damages  of  $19,100.  For  the  purpose  of  estimating  the 
total  cost  of  Damages  to  residence  property  the  unit  cost  of  $19,000  per  mile 
or  $3.60  per  street  foot  has  been  applied  to  the  residence  mileage  in  order  to 
obtain  cost  of  the  Damages  on  residence  frontage.  The  cost  of  Damages  to 
the  small  mileage  of  vacant  frontage  in  residence  districts  has  been  ^gured 
by  using  50  per  cent  of  the  Damage  cost  per  mile  on  xesid^ice  f  rontsge  or  at 
the  rate  of  $9,500  per  mile. 

To  determine  which  of  the  car  line  streets  are  owned  in  fee  by  the  prop- 
erty owners,  and  which  by  the  City,  the  entire  surface  line  mileage  was 
examined  and  classified,  and  the  unit  cost  of  Damages  on  business  and  resid^ce 
fecmtage  per  mile  of  street  has  been  applied  only  to  those  streets  in  which  58 
rights  to  operate  would  have  to  be  secured  from  property  owners  having  the 
fee  in  the  street.  All  other  streets  have  been  classified  as  owned  in  fee  by  the 
City,  including  streets  where  the  companies  have  secured  an  easement  and 
r^ardless  of  the  fact  that  the  fee  in  the  street  has  now  been  acquired  by  the 

Easements,  The  value  of  the  Easements  is  still  to  be  determined  and 
has  not  beoa  attempted  in  tiiis  Review.  As  these  easemraits  were  secured  many 
years  before  these  streets  were  officially  opened,  the  perpetual  rights  to  operate 
thereon  have,  without  doubt,  a  greater  value  than  the  10  year  to  25  year  fran- 
chises that  would  now  have  to  be  obtained  on  these  streets  from  the  "tfynMMf  1 
authorities. 

The  value  is  still  to  be  determined  for  the  right  to  operate  on  streets  held 
ia  fee  by  the  City  nnenenmbered  by  Snrfaee  Line  Easments.  The  gsaeral 
procedure  in  applying  for  the  right  to  operate  in  these  streets  is  to  secure  a 
Franchise  from  the  City  for  a  period  of  from  10  to  25  years,  and  also  to  secure 
the  Consents  of  at  least  50  per  cent  of  the  abutting  property  values.  The 
Oompanies  mxmt  also  deposit,  with  the  proper  authorities,  securities  for  the 
faitibfol  performance  of  their  contract.  This  ties  np  capital  used  for  that 
purpose  which  should  be  listed  in  the  valuati<ms.  It  ia  no^  however,  indnded 
in  the  items  named  in  this  Keview. 

Notb: — The  numbers  plaoed  on  tiie  outer  marginH  of  the  pages  hereof  are  the  page  numben 
of  the  typewritten  eopy  m  the  Review  (filed  as  Exhibit  260)  and  ot  Supplement  Number  One 
(filed  as  Exhibit  270)  at  the  hearings  of  the  Transit  Commission.  BrfHMMS  to  snh  pMi  WMI- 
bere  is  made  in  the  record  of  the  testimony  given  at  such  heaiingiB. 


41 


4l 


in  iTATBHBNT  H. 

THE  NASSAU  ELECTRIC  RAILROAD  COMPANY. 
COMPANY  EXPSNSB8  COMPUTSD  ON  TABLB  L 

ixPExsEs  DVKsm  ommmmimi 

0%  Lmmd  amd  Mi§ki  of  Way,  exclusive  of  PerpetiMl  ItMmenta: 

$42«,188X8%X2.5  jmn  V.  

tia.8tMMX§%Xl  jmr.  ..T...T.   1,110,772 

#■  Jtolltiijr  Stoek: 

18,912,384  X  8%  Xi  year   178.248 

SUB  TOTAL  or  ABOVB  INTIRBST  ITBM8  "nAHjm 


On       of  JVoenrfaf  Jftnqr  (La.  m  Mm.  Iwiiii  imitinm  !■ 
Braurt): 

mmmnm  m  s  jmn.    ssMts 


TOTAL  INTEREST...  |1,«32;2M 

It 

On  Land  and  WUkt  «#  Fflf  .* 

$426,1 18X2.8%X2Ji  ymn   tlyitt 

S2i«»EEBii«o,  Design  ako  Ixshbctiox  Costs: 
Ota  Contract  Costs  sadtaslvt  «f  Balttac  tUmAt 

^^^MZfiM,^Xi%,  ,  ^§jm 

Qm  Ostalfsci  Oosii 

wWiiitxtft.   mjm 

^ISUXAlfCZ: 

HI  Om  BaUiof  Stodt,  iMwaUs  Bortiata  ol  Biiildi«p  ami  Satotstiota  E«ip> 

Mtat.  snifaint  Is  M%  «f  CoalrMloSlt  ^ 

MmMx  jM.    ii^aii 

voxM.  cxnirAiiT  MiMrami  noBiiro  tmmmmimM. .  .Imm^mi 

SKPENSES  PRIOR  TO  COHmPOfKWs 

Mnt jMxa%.   i,se7.82s 

COST  OF  PROdTRlNQ  MUNXY: 

(Termed  Brokerage  is  VsllSitiwi  BlfOTt>  for  ^  lsllsiwl%  IlMMt 

Contrsct  Coat   |IS,787,M8 

-    •    'BigMofWar   lai^iss 

MsMM  (HMHi  for  tetHSsI  Ota  «o>t'  of  wrocarlag 

ry   1,174,288 

Taxes   29,833 

En^neering,  Design  4  Inspection   416,539 

Administraliia,  Ti^pl  mm  OfltS.   455,94 1 

lararaaee.   11,889 

frim  U  ClBtastinUMi   ijmjm 


'WSMs.   $26,879,008 

9HjBfnjmx$%   1,612,740 

TOTAL  COMPANY  EXPENSES.  |6.6S6^70 


STATEMENT  lU.  02 

THK  IMMAn  BLBCTSIC  RAILROAD  COMPAIIY. 
i:OIIPAlfY  BXPBMSBS  COMPUTED  ON  TABLB  IL 

dasriflad  ita  Tkataslt  VatnatkM  Report  as  ''Not  Used  ts  Opemtitm.*' 
BXPKNBBB  DDBINO  OONBTRUCTION: 

Ota  Iifltatf  atad  Right  of  Way,  exclwrive  of  Porpetual  Baiciwitai 

HHW0X8%X2i  years   fl00,800 

Ota  Cotalraof  Cost,  odiuiTe  of  Bdling  Stoek: 

|SfM7SX8%Xl  year   67,870 

SUB-TOTAL  OF  ABOVE  INTEREST  ITEMS   fie8,ffini 

Ota  Coat  of  Proemrim§  JToaey  (iA  on  itea  teraaed  BrdBerafs  in  Valtaatfoa 
Banort) : 

i8MMX8%X2  years   15,841 


TOTAL  INTEREST     $184^11 

Taxes: 

Ota  Land  and  Right  of  Way: 

|6O4,000X2.8%X21  years   36;S80 

Xanrntamra,  Dnam  Mm  InsnBcmoN  Costs: 
Ota  CotaArast  GiBt»  eidiHlfe  dF  Rolling  Stock: 

|SiMTSXi%.      2MSI 

AtaMUHwamar,  Baaoimf^  Lbsal  juid  OmcB  Costs: 
Ota  Contract  Coat: 

$848,373X2%   16,967 

INSUBAHOB: 

Ota  Itasantlis  fortion  of  BidMinga.  cqnivaloBt  to  .05%  of  Oontraet  Cost: 

IMMISXjM.   4M 

TOTAL  COMPANT  EXPENSES  IIUBINO  00N8fSU€nON. .  Hmm 

EXPENSES  PRIOR  TO  CONSTRUCTION:  63 
8%  of  Contract  Cost: 

iMMnxf%.     5M» 

008T  OP  FBOODBINa  MONEY: 

(Ttantaod  Irokerage  in  Valuation  Report)  for  the  following  Items: 

Ootatraet  cost   $848,373 

Latad  tand  Right  of  Way   WkfiM 

btanat  items  except  for  interest  on  cost  of  procuring 

■Mtaqr)   168,670 

Taxaa.    36,280 

Engimering,  Design  aad  Inspection  Costs   25,451 

AAtatadatration,  Executive  Lagal  and  Office  Costs   16,967 

Insurance.   424 

Ouwpay  sosis  frior  to  aotastraetioB   fio^ 


$l,660j067 

fi,iiMi7xt%    Mjsoi 

TOTAL  OOMPANY  EXPENSES   $412,539 


m 


m  STATSMBNT  IV. 

THE  NASSAU  ELECTRIC  RAILROAD  COMPAMY. 

•■■•i      QlMMi^  Shortaiw  Only  and  on  Transit  _ 

Mm,  Sxccpt  ai  Stated. 

GRADING: 

XBMBWtiMi  mai  Back  ill: 

T.  C.  has  338,190  cu.  yda. 
should  have  350^223  en.  jdi. 

Shortage        lg,WS  en.  jda.   t46Ba8 

Ballast,  Omitted  by  T.  C.  '  '"^ 

Shortage  440  cu.  yds...   4^400 

SHORTAGE..   ffljltt 

RAILS: 

T.  C.  kaa      22,225  net  tona 

should  have   22,253  net  tons 

Shortage  28  net  tons   g^jj 

RAIL  FASTENINGS: 

T.  C.  has     tt^llS  Cirl. 

27,490  Cwt. 

8^377  Cwt.   Ifi^l- 

jmnraB: 

T.  C.  has  33,262  each 

dMoU  hava  43^23  each 

Shavtigi        Mil   63,702 

aPSCIAL  W0KK: 

T.  C.  has  78,433  lin.  ft. 

should  be  80,996  lin.  ft. 

Shortafs       %/m  hm.it   tMM 

fRACK  LAYING  AND  SURTACINGt 

T.  C.  has  781,476  lin.  ft. 
^ould  have  683,912  lin.  ft. 

SksfUlt        MM  Hi.  ft.   Wit 

FAV'IAKI: 

T.  C.  has      672,001  sq.  yds.  • 
should  have  676,794  sq.  yda. 

flkovlafi         4|7M  8^  yda..  

(A)$168,38S 

BRITOBS^  TSnSTLBS  AND  OULVKKffH: 

Over  95%  of  this  item  is  the  Coney  Island  250-ft.  Span  Steel  drawbridn 
which  cost  $6&,000  in  1916,  from  which  it  is  evidmt  that  the  total  '  ' 
for  HMsa  ItSMi,  hMindinf  insk  dralM,  la  at  toast.  , 


moBBBsm,  yiif€»  Aim  sicore: 

This  covers  the  Church  Avenue  and  Oesaa  Parkway  concrete  imiar  ecoesing, 
which  cost  about  $69,000  before  ths  mat,  from  which  it  is  evidnl  fhat  the 

is  at  toast   ftyOM 


BUILDINOS: 

T.  C.  includes  the  whole  of  9th  Avenue  Car  House,  of  which  about  i  is 
owned  by  Prospect  Park  4  Coney  Island  Railway,  and  should  be  transferred 
tatia  apfratoai  of  ths  Sooth  l>aoli^y»  Baflfnad  Ccaspany  wiitoh  hoMs  title. 


BONDING: 

Mttad  fegr  T.  a  ahortage   9Hjm 

!BLECTRIC  TRACK  SWITCHES! 

Omitted  hy  T.  C  skflTtagt.   n^gi 

ROLLIXG  STOCK: 

Extra  motors,  Trucks,  C<nnpre8sors,  Controllers   $763,182 

Truck  parts  Motor  parts,  Mr  Canpressor  parts,  OontroUer  puts, 

Car-body  fittings,  etc.  . .  aw,260 


SHOSTA£HE.....   flMtt 

SHOP  TOOLS: 

Shortage   » juu. 

inBnin.i.AW»)DB  tmomatn, 

Omitted  hy  T.  C   fttvjMa 

DAMAGES: 

O'^Wt.C.   594^ 


TOTAL.   *2  137  664 

Dsdnet  for  daaage  aoooont  of  Ninth  Avenue  Ou  Bani   'sso^MO 


PROPERTY  SHORTAGE   tl  787  664 

LAND  AND  RIGHT  OF  WAY  SHORTAGE   '.'..'*  STlSo 

Shortage  la  eoastmetioB  overhead  bring  6.66%  on  (A)  $168,383   9,631 


$2,669,115 


^Nov^nus  shertsfe  does  not  laelade  the  AtlaatSe  Aveaas  Uae  that  to  toasst  t»  Lsag  Ulaai 


TABLE  UL 

SUimART  OF  SaORTAGES: 

Track  and  StnwtmM  (with  $S6M00  dedneted  on  aeoouit  of  Ninth  Ava.  (tor 


Barn )   $162,066 

Electrical  and  Meehanical  ,   IliAM 

BoUiUgStock   wtSZ 


TOTAL  PHYSICAL  PROPERTIES   $986,195 

Land  and  Right  of  Way   871,920 

Consents   217^000 

I>Mn«««M-   694,000 


GRAND  TOTAL  OF  SHORTAGES   UjmMS 


49 


STATSMBNT  V. 

THB  NASSAU  KLBCTUC  KAIUtOAD  COMPAaiY. 

COMfimD  OH  TABLB  m. 


rt 


Ml  MiA*     Ww9,  wuimim  of  BtffMliiia  _  _ 
|griJMxi%X^  ymn  fT.!.   $174^ 

'On  €tmmmlw: 

|ll7,iMXt%Xli  iwn  


$S»4,000X8%X2J  yeanj     IIBJU» 

On  CiMiifvef  Cmt,  mdhuin  of  Bolliiv  Btodci 

m7«Xt%Xl  ymr   i^ti 

On  RottiHg  Stock: 

|W2,432  X  8%XJ  year  

SUB-TOTAL  OP  ABOVE  INTERB8T  ITEMS   IMT^M 

Om  Cm!  «/  Pnemim§  Jf mmv  (i  a,  «b  Vmm  Iwii  Itinhwji  jgi  Vataatiw 
B«part)t 

iiaMMX8«xi  TMM   mm 


WiMs  mxmast     9mjm 


m»d  Might  of  Way: 

|871,920X2.8%X2i  years   iMM 

ro,  Dnieir  ahs  Inanonoif  Oonst 
Om  CSoBtract  Carta,  exehwhre  «f  BoUii^  Stetki 

$13,763X3%   419 

.Tioir,  BxwtmTB,  hmu,:  am  Qmoi  Caiiai 

Ik  Contract  Cwt: 

••«M»5X2%   10,784 

TOTAL  COMPANY  busikbis  mmsm  aommamixm.,,  mm,m 

nVHISES  PKIOR  TO  OOMBmUCTiaift  • 

$986.iwx6%  ,   mm 

COST  OiF  PBOCUKINO  MONEY: 

IfBtiUp  la  ▼■iMiiM  lafMi)  far  tib  iMmAam  IHumt 

IMMM  OmI   |tM,10l 

Laad  aai  Bl^  of  Way   871,920 

Consenta.   21 7,000 

Damagaa.   594,000 

Interest  ilMMI  («nfi  for  IbIwmI  «■  eiMl  «f  ftawlug  MMjf)  357,1 34 

Taxe^   61,0S4 

BugiBceriBg.  Dii(pi  and  iMpaetiai   4U 

AdaiiUatratkm,  Kueiithw  mi  LmbI   19,784 

Camftmj  Coata  prior  to  CoMtraBttMi   59,179 


TOTAL.  93,106,698 


18M9t 


wmSi  cxmriinr  hfmhisb   iriTM 


THE  CONEY  ISLAND  AND  BROOKLYN  RAILBOAD 
COMPANY  Ie  CONHY  ISLAND  k  BROOKLYN 
TERMINAL  COMPANY. 


ilil 


6=> 


H  IS 


I 


3 

S  8 


CM 


CO  (N 

8  : 

S 


H 
O 

u 

» 


g 


(N 

•o 


1  S 


lis 


to  r« 


3  SSSS^   S  S 


•ee 


8I8 


« 


00 


CO 

00 


>e<3« 


P3 


CO«( 


8  8 

to 


«  CI 

s  si 


8  S 


8 


d     «  lO 


CO  ^ 
CO 


88 
8" 


S 


I 
to 


5 


J 


g 

S  c  o 

K  X  £ 

car  ct  S  a 
S  S  o"5 


a. 

3 

—  to  Q 


I 


MM  O 


«  0)  a> 


53 


STATEMENT  II. 

I  Jta§  U»  1922. 


T8B  CONEY  ISLAND  AND  BROOKLYN  RAILROAD  COMFAMT. 
COMFAMY  VmsmSEg  COMFUTBD  ON  TABLB  L 


n 


Om  Lmtd  mi4  Might  of  W«f,  ezaiiaive  of  perpetual  EMcments: 

iraMMXt%XH  J«M»  •••     flIM>i 


Ol»  Contract  Cost,  exclusive  of  loOiag  m&mt 

$•,240,630  X  8% XI  jmr.,.    ♦   499^ 

9ijmjmxmx%  ymt  -  tMW 


m-mii*     AKuvB  iMTMMBwr  imtB   iriMtt 

0»  OMt  of  I*roemrki§  JfeMf  (1 «.  «i  ttwi  Iwei  Bminriii  1b  YatatllflK 

Report) : 

|804,676X8%X2  yw«   ^'^^^ 

TOTAL  mXEBEST   1876.130 

Tazks: 

Ok  Land  and  Right  of  Wa/y: 

9782,400X2.8% X2i  years  


taaumantm  Comi 

9MIMItxt«  l«  1  "  m»» 


ADHnnsnuLTioir.  Exxocnfl*  Tlif  Am  MnM  OOMit 
On  Contract  Coet: 

$10,773^48X2%   HIMW 


Boiling  Stock,  insurable  portion  of  Buildings,  and  Power 
Snlwtation  Equipment,  equivalent  to  .06%  of  Omtraet  Ooalt 

mmMtx  ji«  —   wr 

vmss  ooMrAiiY  hfiiw  duito  oomnniofioif .. .  ^mm 
Mxmam  wmm  to  ooiiBimDoiKiiri 

•%  «|  Owtract  Cost:  ' 

$10,773,248  X  6%  •  040,3»8 

(Vmi  f«  Bntenga  to  VtlMlta*  laf«t)  im  m  MlMtef  taat 

ooHiNfli  Cost  

IiMi  aad  Bight  of  Waj  •   •  782,400 

.  .TTTT.   746,382 

 ,,,...«.».....»•»•••  54,768 

    «C,  Design  and  Inspection   if 

AdSiiBtotration,  Executive  and  Legal   tl5,4«8 

Insurance   a.flQoI 

GoMfugr  coats  prior  to  Conatmctioii.   Q^G,S9b 

•iMiijMXi%.   tnm* 

imAL  COMPANY  EXPENSES   $2,789/>40 


STATEMENT  UL  72 

THB  CONEY  ISLAND  AND  BROOKLYN  RAILROAD  COMPANY. 
COMPANY  EXPENSES  COMFUTBD  ON  TABLB  IL 

ClMriSed  in  Tnasit  Vakutioa  Report  u  "  Not  Ussd  in  OperaHMk" 
BZPBM8BB  DURING  OONSTRUCTION: 

IITTERE8T  : 

On  Land  and  Right  of  Way,  exdusive  of  perpetual  fflMfMiatl  i 

$285,800X8% X2i  years   $57,160 

On  Contract  Coat,  exclusive  of  Rolling  Stock: 

f786,S«4X8%Xl  year   02^ 


SUB-TOTAL  OP  ABOVE  INTEREST  ITEMS   $119,989 

On  Cott  of  Procuring  Money  (t.  e.,  on  item  termed  Brokerage  in  Valuatios 

Report) : 

$78WX8%X2  yeMra  

TOTAL  INTBR18T   flS2,i29 

Taibb! 

On  Land  amd  Right  of  Way: 

mijmxnjt%xu  yM«i....   njam 

BimRKEBiNG,  Dbsiok  AITD  iNSnCTIOir  00B»: 

On  Contract  Costs,  ezeluaive  oi  Rolling  Stock: 

$785,364X3%   njm. 

AamniBTRATioir,  Ezbcuhvb,  Legal  and  Omoi  Costs: 
Ok  Ooirtnwt  Cost: 

$wmx9%.   wm 

Iksubance  : 

On  insurable  portion  of  Buildings  and  Power  Plant  and  Substation  Equip- 
ment, equivalsttt  to  M%  of  Ooalract  €3oat: 

f7aMMXj0O%.     S0S 

TO1:AL  aWAHY  EXFUIBBS  DURINO  OONSllKOCTIOir...  ftOS,lM 

XXPENSBS  FRHMl  TO  OONSTRUCTION: 

6%  of  Contract  Cost:  73 
$785,364X6%   47422 

COST  OF  PBOCURINO  MONEY: 

(Termed  Brokerage  in  Valvation  Report)  for  tlie  following  Items: 

Contract  Cost   $785,364 

Land  and  Right  of  Way   285,800 

Interest  itsBM  (cifiept  for  interest  on  oost  of  pr«earb4:  mmj )  128,309 

Taxes   20,006 

Engineering,  Design  and  Inspection  Costs     2^501 

Adn^stration,  Sbbeentir^  Legal  and  Offlee  Costs   15,707 

beuranee.   393 

Oamf— y  Eipaseis  PMor  to  Qmstmetifm   47,122 


TOTAL.    $1,306,262 

$1^,202X6%   78,376 

TOTAL  OOMPANY  RXPENSES   |117,Mi 

65 


^  SflifeMENT  IV. 

THE  CONEY  ISLAND  AND  BROOKLYN  RAILROAD  COMPANY. 
m  QMBlity  SlMCtilM  QaOf  ud  on  TraM^Cominiwinn  Valuation  Bureau 


GRADINO: 


T.  C.  has  105,164  cu.  yds. 
should  have  128^11  cu.  yds. 


BAILS,  RAIL  FASTENIIVQ8  AKB  JOINISt 
Bail  Fastenings: 

T.  C.  has        7,207  cwt. 

mrt.   tlMM 


Joiats: 

T.  C.  has       11.431  [ 


■honld  hav«   16,648  jahite 


Jataia.   16.109 


nnCIAL  WOBK: 

T.  C.  has  29.752  lin.  ft 
should  have  30,^4  Im.  ft 


fOIXS  AND  FUXCBBS: 

T.  C.  kM  1^  polM 


lOWER  PLANT  AND  SUBSTATION  EQUIPMENT: 

Shortage  in  this  item  is  apparenUy  due  te  wiMty  lev  «Bil  fffieea  «ni,  aad 


BOHDINO: 

Omitted  hy  T.  C  •  •   ^fi^ 

XLBCIBIC  TRACK  8W1XGB18: 

<Mtlei  W     CI.    '  '  


BBOP  TOOLS:                                                                     •  ^ 
Shortage.  •••••  •••• 

ROLLING  STOCK:   

mm         Shortage  in  extra  trucks  and  compressors   wl^m 

• "        BlMirtaie  m  truA^yto^jBotor^^ts,  air  compressor  parts,  contrM-  gg^jy 


MBIMIM3L  ,   M^TOt 

LLANEouB  BQinniiirrt  ^ 


CONSENTS:  immn 

Omitted  bty  T.  OL.   lepow 

mmtim      mMii 

KM. 


LiXD  AND  RIGHT  OF  WAY  SHORTAGE   ^41  ,tM»n 

Shortage  in  eonetruetiou  overhead  being  6JB»%  of  (A)  $W,303   6,621 


TOfAL..   1712,838 


TABLE  m. 

SUMMARY  OF  SHORTAGES: 

Track  and  Structures   9104,924 

Electrical  and  Mechanical    201,000 

RoUing  Stock    »8,T09 


TOTAL  PHYSICAL  PROPERTIES  , .  $399,633 

Land  and  Bli^  of  Way  ;   41,600 

Consents.   76,000 

DaaagM.       ItMOO 


GRAND  TOTAL  OF  SHORTAGES   $7 12,238 


S7 


* 


mum  mum  Mm  mukvnniD  railway  compamt. 

COMPUnD  ON  TABLB  HI. 


ii 

BXPENSES  DUBOm  iXMVIBIWflOlft 


0m  Lumi  mU  Mi§ht  of  Wom,  mOmOm  «f  fHfrtil  Ihinifti 

$41 ,600X11  9wnXt%                                                  •  WtSao 

OnCom»emt$:   

«Nyittxt%x»i  yMM                                   ....  iMM 


flt6,000X  8%X2i  jm   ti.«W 

Ok  Contract  Co»t»,  excluriTe  «f  Bollipf  fltoekt 

$306,924X8% X I  JM*   2M74 


0»  XollMtf  fliodb:  . 

HMttXtftXl  iwr      '»W4 

8ij»>ToirAii     ABoiTB  nmBiBf-inniB   9mm 

fM^EtXtllXt  fMH.......  •   W 


TOIM.  IITMMBI  

On  iMtf  Mitf  Aif k«  cf  Way.* 

$4I,600X2^%X2|  years   Mil 

BmanHOuara,  Dnnir  ahs  Insncnoii  Coani 

Qi  Onrtnet  Ooate,  cuiwHw  of  lolltef  OlMk: 

$305,924X3%  for  1  year   w,Vt9 

97      AMOmnuTioN,  Emcutitk,  Lual  ahd  Orrici  Costs: 
•*  Contimct  Cost: 

$3MdiaiXl%.  

'"'Si"?ower  PUnt  aai  Oiihrtatiwi  IfiilpMBt,  eqniTalcnt  to  .06%  of 

CMtnefc  CoBt   ^ 

TOTAL  COMPANY  EXPENSES  DUfiINO  CONSTRUCTION.. .  $113,430 

■imnSES  PRIOR  TO  CONSTRUCTION: 
•%  of  Contrmct  Corti 

$899,633X  6%   S»,»78 

Lud  and  Right  of  Way   M1.600 

CoBMIltS   llijSo 

'!*.*.'.'.*.".!!.!!'.!!*"!!"'*.  1 1         1 !      zIq  1 2 

Engineering,  design  and  inspeettOB  •  •  • 

Administration,  Executive  and  Legal   mi 

Insurance.   wra 

OoBpaay  aspcnaea  prkw  to  construction   vUfWi^ 

TOTAL.   •*46.729 

•«46,729Xe%  •  •  • 

TOTAL  COMPANY  EXPENSES  •  •  flt4,181 


BROOKLYN,  QUEENS   COUNTY   &  SUBURBAN 

BAILROAD  COMPANY. 


I 


STATBIDDIT  II» 
BROOKLYN.  QUSBN8  COUNTY  ft  8UBUBBAN  RAILROAD  COMPANY. 

cmmmv  MMwrnrnm  ammnm  om  vAauiL 


XXPENSES  DUBmQ  €UilM!llll€II€irt 


't 

Oil  Imnd  and  Right  of  Way,  OBeiariva  of  parpateal 

$271,200X8%X2J  year*   964,240 

Om  CMfraot  Co»t,  exeluuve  of  BoUiag  Stock: 

irm»ixt%xi  fMT   MMot 

Oil  Boiling  Stock: 

|8,071,330X8%XJ  jmr   41,427 

flUB-IOTAL  OF  ABOVE  INTEREST  ITEMS   ttMilTS 

m  OmI  9f  Fmmrim§  Mwmtg  {i.  ft.  <ii  It—  UnmA  Brtir—gi  fa  VahMlioa 


PM^MXaHXS  fwm     liMtl 


mil.  nmiiBr   iitMM 

: 

On  Lm*  md  Right  of  Woy: 

9tTl JMX2^%X2i  j«m   lliMi 


Bhoixeebing,  Drareif  JUi  nmaoniw  Oomt 

Ob  Cootract  Ckwts,  exclushw  «|  Billlif  BImIii 

$7,046,321X3%  XI  year   SIMM 

I,  tocPTm,  Lmai.  4jn  Omci  Oonts 

Boiling  Stoek  and  iwrtll  §&Mm  «f  .BlBilWp,  Ulllriwt  i»  Jl%  cT 
CoBtraet  Coat: 

i%lIf,MlXJM.  

mAL  (xmPAMY  BiFiMns  mrnxm  vmmmmm,,.  m^mjm 

PRIOR  TO  CONSTRUCTION:  . 

IMlT.«lXtft.   .   

OF  PROCURING  MONEY: 
(Termed  Brokerage  in  ValuatioB  Report)  for  the  foUowing  Iteau: 

Contract  Coet   »»."J.«51 

wi «i  w»   • -  i:     • — 111"      27 i^ioo 

TkacM.  •  •   W|1S4 

Engineering,  De»ign  and  Inspcetta   ?il'JS 

AdaibiMralh%  Executive  and  Legal   182,303 


4,659 

IMto  y^iv  tft  OailnMtfHi.  «..••..•.   647,050 

loiAL.  "iijiiisi 

9ii.Pi^xe%  

TOTAL  OOiiPANy  BXHOnUS   »8»»»0»>M 


BROOKLYN,  QUEENS  COUNTY  ft  SUBURBAN  RAILROAD  COMPANY. 
COMPAMT  BXPBMBBB  COMPUTBD  OH  TABLB  U. 


m 


CkwMed  ia  Tkaatit  Vahnttaa  Biport  u  *Nok  Um4  in  Opcratte.' 

EXPENSES  DURING  CONSTRDCTiON: 
Intbbest: 

On  Lmmi  tmd  MUghi  t4  Way,  exdosm  of  Mmtwa  Eaaeawata: 

fn7,IMXfli%XSi  jmn  .VT...."   .  tiT^ 

On  Contract  Coato,  mitmitn  of  BoUbig  Stodcs 

|lfi(VSllX8%Xl  J«r.   ...  IMM 

SDB-TOfXAL  Of  ABOVB  IMTBKBSr  HBMS  flf^ 


0»  Cott  of  JVoowiwy  JfoMy  (i.  ft,  on  ftaai  iiiiMiMl  Bmiawigt  ia  Vnlartioa 
BoBort): 

|M,4llX8%X2  years   tjm 

TOTAL  INTEREST    $86,204 

Taxes: 

On  Land  and  Right  of  Wajf! 
$S37,200X2.8%X2i 


Emcineerino,  Design  and  Inspection  Costs  : 

On  Contract  Costs,  exclusive  of  Rolling  Stock: 
9180311X3%  

AOUINISTRATION,  ExECUTIVB,  LBQAL  AND  OFFICB  COBTfl: 

On  Contract  Coet: 

9lfiMllX2%.  

ImVBANCE : 

On  insurable  portion  of  Buildings,  equivalent  to  .05%  of  Contract  Coat: 

91iO,SllXjOO%.   TO 

TOTAL  COMPANY  EXPENSES  DURING  CONSTRUCTION. . .  $116,488 

EXPENSES  PRIOR  TO  CONSXRUCTION: 
0%  of  Contract  Cost: 

9160,811X0%   OjOlO 

COST  OF  PROCURING  MONEY: 

{TtnmA  B^olMMgo  te  ValaalioB  Boport)  for  the  foBMitef  Itaw: 

Contrapt  Cost   9150,311 

Land  and  Right  of  W»   337,200 

I  far  - 


Interest  tfeOM  {mMf/t  far  fartnvofc  oa  ooat  of  proenriaf  tnmny)  79,465 

TaxM.   23,604 

WjagtarfiTlng.  Deran  and  Inspection  Costs   ^SOO 

Administratlmi,  &MVtiv«,  Ugal  oad  OiBee  Coats   MM 

Insurance   75 

prior  to  oonrtnMtiw   . .  0,010 


TOTAL.   9i9r499 

9007A8»XO%   UA»l 

TOTAL  fXXNPAMY  BZFBB818   919I|9M 


BROOKLYN.  QUEENS  COUHtT  ft  SUBURBAN  RAILROAD  COMPANY. 
Based  on  Quantity  Shortages  Only  and  on  Transit  Conunission  Valuation  Burcait 


T.  C.  Iwa  141,564  cu.  yds. 
should  have  165,663  cu.  yds. 

■hortage         24,099  cu.  yds.   #82,857 

Ballast,  CQBcrcte  under 

alMd  Iks*  eaiittad  i;m  en.  yds.      12,860 


gfllMtTAOB. . . . .   174,907 

BAILS,  RAH*  yjUEnSNINGS  JJIB  XMWrBt 
Bails: 

T.  C.  hm  mMt  Ml  taM 

sliould  liavs  Ilyfit  Ml  tans 

sWtage  OOnet  toM   0,107 

BaQ  FastMiags: 

T.  C.  bas  10,842  cwt. 

dMNild  liaTC  13,019  cwt. 

shottapi  %lTi  ewl   I0»770 

Jisiata: 

T.  a  kM  1S,0S3  loiala 

shoold  km*  19,873  joints 

skottafs  4,820  joints   30,462 


SHOBTAGS.   47^ 

8PSCIAL  WORK: 

T.  C.  has  lt,80S  llB.  It 

should  have  S4,737  lin.  ft. 

shortage  872  lin.  ft.   7,403 

TBACK  LAYING  AND  SURFACING: 
T.  C.  tea  080,003  lin.  ft 
shndd  hKm  008,015  lin.  ft. 

shortage  1,322  lin.  ft   1,124 

PAVING  OVER  DUCTS:  , 
T.  C.  has  1,845  sq.  yds. 

akanld  have    18,600  sq.  yds. 

Amiam        . 10,066  si|.  yds.....   101,602 


(A) 1888,411 

BBIMia  tUSTLBS  AND  CDLVBBXB: 

Two-lMdi  dralm  eaitled  Igr  T.  0.   4M 

WINDING: 

Omitted  by  T.  C   60,000 

BLECTRIC  TRACK  SWITCHES: 

OMdMadtfT.  0     4^ 

ROLLING  STOCK: 

Shortage  in  extra  motors   $141,816 

Shortage  in  motor  parts,  car-body  fittings,  etc   44,084 


180.600 


04 


SHOP  TOOLS: 

Shortage   fll^BOQ 

MISCELLANEOUS  EQUIPMENT: 

Oattted  hy  T.  a   2,900 

OOMSKNTB: 

0«mailyT.a   §1,000 

nAXAjGOB: 

<MMed  liy  T.  C.   171^000 

PROPERTY  SHORTAGE   f778,4Sl 

REAL  ESTATE  AND  RIGHT  OF  WAY  SHORTAGE   2JtB»jm 

flMoffi  In  caortiiUliB  arerheai  hiiiv  6.00%  of  (A)i88e,ittl   14M 

$2,884,789 

TtABLB  m. 

SUMMARY  OF  SHORTAGES: 

Track  and  Structiures.   $267,109 

Electrical  and  jfenhawinal   77,100 

BeUiiig  Stoek...   180^ 

TOTAL  PHYSICAL  PROPERTY   $530,709 

Land  and  Right  of  Way   2,052,080 

Consents.   91,000 

Damages   171,000 

GRAND  TOTAL  SHORTAGES  .$8344.700 


STATBMBirr  V. 
wmoOESJnn,  qvxens  county  &  suburban  railroad  company. 

COMPANY  EXPENSES  COMPUTED  ON  TABLE  III. 
Baaed  cm  Shortages  in  Transit  Valuation  Rq^ort. 

■xpENSEs  dubupo  omtmiocmKi 

iNTBBBSTt 

Oil  Lmti  mti  Atefcf  of  Waf,  axelwiva  «f  pwpitMl  liiwiatit 

mjmjmi>mkxH  w^Mw 


$91,000  X  8%X2J  7«ara    IMw 

On  DMMfc*: 

§171^X8% X2i  years   HMO 

Om  esniraot  Cot«,  exclusive  of  RolUng  Stoek: 

|M«jMtX8%Xl  y««r    WW 

|lSMMXS%Xi  jwr.   W30 


SUB-TOfAL  OF  ABOVE  INTEREST  CHARGES  

0»  CmI  o/  iVoeMrt«9  ¥oii«y  (i.  e.,  on  item  termed  Brokera^p  in  Valuation 

|nSll8X§%X2  jmn   33,939 

loEM.  nrmiBT —   9mm 

Om  lantf  and  BigM  af  W«f  .* 

IMn,flMXS.S«XS|  |«afa  


BnoniaEBiKO,  Design  and  Inspection  Costs  : 

tin  C<Hitr»ct  Coets,  exclusive  of  Boiling  Stoek: 

$344,209X3%  for  1  year   IMM 

gyg^       Administration,  Exicimviy  laott  JJKB  QmoB  Oontat 
WBr  tin  Contract  Cost: 

|S30,709X2%   10.gl4 

TOTAL  COMPANY  EXPENSES  DURINQ  CONSTRUCTION...  |«8S,00« 

■aCPINSES  PRIOR  TO  CONBIBUCTIOiNt 

•%  of  Contract  Coat:  ^ 
|6a%70tXt%.  •  r- 

coer  OP  pRocmtiHG  Momf  1 

(HMd  Brokerage  in  VataatlMi  Bapart)  far  tka  failoiriag 

Contract  Coet  ^   J^'JH 

Land  and  al  Way..  

f!ii»«MitM_     »1,UUU 

iggJTL.    171,000 

BitmSitltMM  («ic^  for  iatarwt  on  coat  of  providing  money)  494,083 

Taxes  ■•  -  V  ^  A' *  ^il'ltl 

Engineering,  Design  and  laqpMtion  Owli   JMM 

Administration,  Executian  and  1^  -   lyfi* 

—  ~     to  MMM&Hilin.   alaMI 


TOTAIfc •   ^^iMi|^M 

|liitM»lX8%.  •  •  •  •  •  •  •  "''^^^ 

TOTAL  OOMPANT  IXPIWnS..  


SOUTH  BROOKLYN  RAILWAY  COMPAOT 
AND  LESSOR  COMPANIES. 


SOUTH  BROOKLYI^  RAILWAY  COMPANY. 
PROSPECT  PARK  &  CONEY  ISLAND  RAILROAD  COMPANY. 
PROSPECT  PARE  &  SOUTH  BROOKLYN  BAILBOAD  COMPANY. 
NEW  YORK  k  CONEY  ISLAND  RAILROAD  COMPANY. 


STAT£1ISNT  tL 


"fHB  iOUTH  BROOUyil  lAILWAY  COMFAIIY. 

mmwmt  sxmmt  cmmmmmnrnm  l 


EXPENSES  DURING  CONSTRUCTION: 

On  Land  and  Right  of  Way: 

$3,157,080X  8%  X2i  years   fill,«» 

0»  Omiirmct  Cort,  czduuve  of  RolUng  Stock:  mijim 

$MlS»tr4Xt%Xl  ymr     Wifim 

nJnSjmxmxi  jmt   ^^'^^^ 


8UB-10IAL  OF  ABOVE  Df  DfTERBST  ITIMB   m»^l 

On  Coat  of  Proctirlnf  JTm^  (4  c,  «■       *i«m4  BNlBmfi  i»  Valuatioii 

Report) : 

iM^7itXB%Xl  jmn   •  •  ■  •  


TOTAL  niTBBEST  $l,»«,8» 

On  lond  and  Right  of  Way: 

$3,157,080X2.8%X2i  year*  •   W^W* 

EnouiiEUKO,  Design  and  Insmccwoii  Cmwb: 
Ob  Ckmtraet  Coats,  «wtativ«  of  8l0cki 

•s^iwxss.    • 

ADmNIBTRAtlON,  EXBOPICTP,  I-WUU.  ATOOflWI  OOMBi 

On  C<«tr«et  Corts  %mmaim 

IMO^illiXt%.     im^ 

Stock,  inniraUe  buildiiin  portion  of  buUdings  and  Substation 
IM0MWX4B«.  •  


TOTAL  COaiPANT  iXfEHiKI  DillllNO  OOMirKKDCITIOII...  H^ttMYi 

BXPENSE8  PRIOR  TO  CONSTRUCTION: 
•%  of  OoHtraet  OmI: 

tMOI.ii»xf%.   •   •^'^ 

OOBT  OF  PROCURING  MONEY:  «i.  Mkmin.  lianu- 

(Termed  Brokerage  in  Valuation  Rep<^)  for  tfcc  fouoviiig  itMU. 

COKtraet  l(OB»  •  •  •   t  nan 

hud  «nd  Right  of  Way. . . •  —  •  —  3,157,080 
Interest  Items  (excqit  for  latercrt  on  CMi  of  praeortag  ^^^^^ 

moneyK.  wSl* 

Taxes  V- ins  ^as 

Engineering,  Design  and  Inspection ^  •  -     -  • \mimq 


TOTAL.   »1M«M«0 

|10.1«8.I«>X6%   "^'^^ 


TOTAL  COMPANY  EXPENSES.  .^^2 


in 


STATBIfBNT  IIL 

THE  SOUTH  BROOKLYN  RAILWAY  COMPANY. 
COMPANY  EXPENSES  COMPUTED  ON  TABLE  U. 

Ctassified  in  Transit  Valuation  Report  as  "  Not  Used  in  Opermtion.** 

&XPENSE8  DURING  CONSTRUCTION: 
IMIBBBT: 

On  Land  am4  Ul§ht  of  Way: 

$12,800X8%X21  years  

On  Contract  Coat,  exclusive  of  Rolling  Stock : 

$157,325X8%  XI  year   12,586 

SUB-TOTAL  OF  ABOVE  INTEREST  ITEMS   $15,146 

On  Coat  of  Procuring  Money  (».  e.,  on  item  termed  Brokerage  in  Valuation 
B^ort): 

|1M1SX8%X2  yeurs   1,964 

TOTAL  IHTBBESf      f  17,100 

Taxes: 

On  Land  and  Right  of  Wof  .* 

$1MOOX&8%X2|  ysars   Sit 

ExoiNBEBiiro,  Dbsioh  ano  LfSPBonoN  Costs: 
On  Contract  Coat,  eadiiiive  of  Rolling  Stock: 

$157,325X3%   4,710 

Administbative,  Executive,  Legal  and  Office  Costs: 
Ob  Contract  Cost: 

$167,826X2%    1.146 

Irsubance  : 

On  insurable  portion  <rf  Buildings,  equivalent  to  .05%  ol  Ccmtraet  Cost: 

4l6%Xf  167,626.   70 

TOTAL  COMPANY  EXPENSES  DURINO  CONSTRUCTION. . .  $28,940 

EXPENSES  PRIOR  TO  CONSTRUCTION  : 
6%  of  Oontcaet  Cost: 

fl6T,i26X6l|.     9^ 

OOBT  OF  PROCURING  MONEY: 

(Termed  Brokerage  in  Valuation  Report)  for  the  following  Items: 

Contract  Cost   $157,325 

Land  and  Right  of  Way     12,800 

Interest  items  (except  for  interest  on  cost  of  procuring  money)  15,146 

Taxes   896 

Engineering,  Design  and  Inspection  Costs   4,710 

Administration,  Executive,  Legal  and  Office  Costs   3,146 

Insurance   79 

Company  Expenses  Prior  to  Construction   9,440 

TOTAL.   $203,651 

$203,561X6%   12,216 

TOTAL  COMPANY  EXPENSES   $47,593 


90 


91 


71 


STATEMENT  IV. 

TBB  SOUTH  WSmomLWU  BMLWAT  OMPAMt, 

I  Only  and  on  Transit 
PricMk  M  Staled. 


CBADINO: 


T.  C.  has        2,702  cu,  yds   9ifil^ 

ahMdd  have    16^65  cu.  |ds.   40,443 

SHORTAGE   $37^7 

UK,  RAILS,  BAIL  F18XINIMQS  AMD  MSmB,  TRACK  LAYING  AND 
iCRFACINO: 

T.  CbM      113,743  CO.  ft. 

hKm  154^118  «M>  ik»  _ 

4MtS  •   m*0»* 


T.  C.  has  12,387  lin.  ft. 
■hMOd  hmim  17,7M  Iku  it 


mmmm^wMMammEmmi 

T^haa.   tjMg 

SHORTAGB.  

DOCKS  AMD  WHARVES: 

SHORTAGB.  

SUBSTATION: 

'SAg°W  ■»  yia. .....   

Air  lar  WMiMflBaB^i    lO^MO 

 ,   Tnrrrr  imm 

)US  BUILDINQSt 

T.  C.  baa     683,400  en.  It....  "  •IU'5S2 

ahMild  haTB  879,400  cm.  ft   MMW 

SHORTAGB.  

(A)  $481,210 

HOflB'  mi  imLDlliQSr 

«.  CL  Modes  the  whole  of  9th  Ave.  Car  House  in  The  Nassau  Electric  R.  1. 
imilMl    Part  of  this  buUddng.  «tiaiat«l  at  $350,000,  beloags  to  thaPrw- 


■ONDINO: 

Omitted  hy  T.  C  •  

fRACK  SWnCHBS: 

Ortllii.%T.a  flaltiil— mi  ■   

ntOPERTT  SHORTAGB  

UKD  AMD  BIGHT  OF  WAY  

IS 


^^^^■■lllllllll" 


C»NSENTS: 

Omitted  by  T.  C.  To  be  dfltorwiirad  

DAMAGES: 

Omitted  by  T.  C.  To  be  determined  

SHORTAGE  IN  CONSTRUCTION  OVERHEAD: 

teii«  S.M%  of  A  ($Ml;211)   187,237 

SBOBTAGB  IK  OONSTBUCTIOir  OYBBHBAD: 

Mag  nj%  of  B  ($14^)...     3,351 

TOTAL  SOOBTAGB  $2,980,540 


TABLE  m. 

SUMMARY  OF  SHORTAGES: 

Track  and  Structurea   $858,448 

Bkmiriffiil  aad  yf«fiiit«|ii^i   17,703 

TOTAL  SHORTAGE  PHYSICAL  PROPERTY   $87$3il 

Real  Estate— Right  of  Way   l,484^iMl 

Consents — To  be  determined  

Oamai^e — ^To  be  determined  

GRAND  TOTAL  SHORTAGES..   $2,380,540 


7S 


STATEMENT  V. 

THB  tOOTH  BROOKLYN  RAILWAY  COMPANY. 
COMFAinr  nPBNSBS  COMPUTED  ON  TABLB  lU. 


est: 

On  L«iMl  and  Rukt  of  TTay: 
il^ittJltxi%X«|  jmn. 

m  ^mlmet  C<mi,  «zeiwi?»  af'  BoUtaf  'itodc: 

iltlbMlXt«Xl  jwur     W» 


8i».ioTii.ixrABmiirfBiiiriTiiiB   niMit 


BeptHTt): 

|lllglWX8«XS|  jmm   •  • 

lOTAL  INTEREST   mMft 


 and  J?»^A*  of  Way: 

$1.484.299  X  2.8%X2J   years   lOMtl 

Bii«iina»uie,  Dbswh  ajib  Imbkction  Costs: 

Qli  OMtHMt  CiMtt 

mihttixss.  •••  

AOMIMStSATION,  BMgUUMtl» 

On  Contract  Oosl: 

|gnkMixs%.  — 


On  Insurable  portion  of  BaUdiags,  equiTalent  to  .05%  of  Cmitrnct  Oo«t: 
1876,241  X. 05%  


1T,IM 


4S8 


TOTAL  COMPANY  EXPENSES  DURING  CONSTRUCTION. . .  $643,220 

  iM74 


PRIOR  TO  CONSTRUCTION: 
•%  of  OMtzsot  CosI: 

iii«^ixt«  


COST  OF  PROCURING  MONEY: 

(Tsmed  Brokerage  in  Valuation  Report)  for  tlie  foUowing 

Contract  Cost   S'om 

Land  and  Right  of  Way  •  ^  • 

Interest  items  (except  for  interest  on  ooat  of  procuring  monej) 

Taxes   •   26^87 

SfiSSSS^&JSL^S^    ]^^\ 

Company  expenses  prior  to  tma^xwmkm..   ^2it 

Insurance   _____ 


TOTAL. 

HWitxi*  


TOAL  ooMPAinr  ixpiirai....  —  -  mim 


THE  BROOKLYN  HEIGHTS  RAILROAD  COMPANY 


n 


STATBMBNT  U. 


raS  BROOKLYN  HEIGHTS  RAILROAD  COMPANY. 
COWAMY  XXPSNSB8  COHPUTSD  ON  TABLE  L 

BIPENSES  D0Bm  CXHIBXKIIOflOlf t 

In  TEBEST : 

0»  Land  and  Right  of  Wa^,  ttwlwiva  of  ]Mrpctiial  BlMMnte: 

frMWXtftXli  jmn   WMM 

On  Contract  Coat,  exclusive  of  Bolltaff  BtodE: 

$947,154  X  8%X1  jmr   16,179 

Om  MoUmt  8toek: 

|UMMX8%X|  JtU    W9 


SUB-TOTAL  OF  ABOVE  INTEREST  ITBMB.   11^141 

Om  Coat  of  Procuring  Money  (i.  e.,  on  item  tcmfld  Biutaflil  li  Valaatiw 
Baport) : 

|fr»ltlX»%Xt  fwn    •   ^^^^ 


mill  mrwum —  •    

Xaxes: 

Oli  JLand  Midi  B^lpft^  B^i^jf* 

mNtx&tftxsi  jmm  . .  ■  

BnomEEUira,  TJmtmm  am  Ihshection  CkMm: 

Om  Cmtrmet  Ooaty  vxelvmir*  d  BoUiag  Btoekj  mjm 

AmuifisnATioir,  Exm!tl|||i|^^        OmOB  Osimt 

On  Contract  Cost:   

«iMai»xs%.  «  •  •  

****!fti^fK«-g  Stock  wai.  hmnMU  'ftrtto  tf  BttUffiafi.  gurtwIiMt  to  Mi% 

«f  Contract  CobIs 

ilJW,813X.05%   


lOIAL  OQMPANY  BJOPENSBS  DUBINQ  OONSTBUCTION. .  $174,8« 

pnwmiiBB  PBlOiB  VO  OOHBllIIOfKliri 
•%  «f  OcmtnM!t  Coat: 

$1,302,813  X  6%   WW 

€OST  OF  PROCURINQ  MONEY: 

fl^TMA  BNlnng*  tai  fatmlOm  B«p«i)  far  Ikt  MMm  ItaBB: 

Contract  Cost  '^''SSSii 

Land  and  Right  of  Vfmj  v:  •  •  m:   .•  •  JtR? 

M«wtM«M  fiaoMfft  for  tatonafc  m  cmI  of  fiucui'iag  aoMgr)  ^JJJ 

S'^SlJi'w  'T^ffifw'imi  tiiiw^     Cnrts   28,415 

AdSiXt«tioVl&ee«tlf%  Lifd  aad  Omm  OiMto   2«.J6« 

Insurance  •••  •■.'•«*.;    i«« 

UHifHy'  B^pMMMi  VMiV'  to  OihMnhImb* ••••••  


loiAi..  wwers 

HJlMllXtfl. . .  •  ,  "^'^''^ 


mM.  CCWAIIT  B1M1I8BB   — -iSSiil! 


STATEMENT  IIL 


99 


THE  BROOKLYN  HEIGHTS  RAILROAD  COMPANY. 
COMPANY  EXPENSES  COMPUTED  ON  TABLE  II. 

ClMufied  in  Transit  Valuation  Report  aa  "  Not  Used  in  Operation." 


EXPENSES  DUBOrO  OONSfBUCTIOHi 
Intebbbt: 

OmLami: 

PttJtB»X9%XH  ymn.   9tJSt§ 

Om  Coat  of  Procurim§  Mmtg  (i     on  item  termd  Brafcuage  to  YaloatioB 

Report) : 

mmX9%X2  years   4OI 


TOTAL  INTEREST    $6,97? 

TA»i 

9nj6WX2A%Xii  years   2JMItt 


TOTAL  COMPANY  BXPBKSES  DUBINO  OONBXBUCTION. . .  mm 

COST  OP  PROCURING  MONEY: 

(Termed  Brokerage  in  Valuation  Report)  for  the  foUoiwing  Items: 

Land   flS,8M 

latarast  on  Land   6^76 

Tiam.   2,S02 


TOTAL   $41,758 

•«1,788X«%     tJBM 

30TAL  COMPAMY  EXWIBBS    $11,784 


ft 


STATBMBNT  IV. 


THE  BROOKLYN  HEIGHTS  RAILROAD  COMPANY. 

BaMd  on  Quantity  Shortascs  Onhr  and  on  Transit  Commission  ValuatiMi  Banm 

jMmi  Mr,  Wmmg*  m  fiaiiix 

QRADINO: 

EzcsTstion : 

T.  C.  has        10,006  cu.  ydi. 

■lioold  bave  11,4»5  cu.  yds.  mmmn 
■hwti«s         Igdlt ««.  fik.   iMn 

KAILS,  RAIL  FASTENmGS  AMD  «KliKT8t 
Bail  FastoiiiigB: 

T.  C.  kas  840  ewt. 
ihMiM  lim*    1.M7  cfwt. 

daiiili'        tiT  «•*......  ■  *'   fiiPw 

skoold  liaTS     Ijm  lointa 

dHvM^  ait  jotets  


gBOBXAGOL  

SraCIAL  WORK: 

T.  a  has  3,418  lin.  ft. 

slMNiMkaTa  1,730  lin.  ft. 

■hortmge  312  lin.  ft.   

TRACK  LAYING  AND  SURFACING: 
T.  C.  has       25,834  lin.  ft. 
akottld  ham  8MP  Ua.  It 

PATOIO*   

SSti.**^  SSSjSt...  •••  


*^^aSt^'of  S6J»%  of  ths  vahM  «l  tha  liMpa^  ©spot.  r^»»J''T/"''?,:S* 
Brooklyn  Heights  Railroad  owns,  tlw  roMtladar  owned  ^ar»™)y»_^ 
Railroid  T.  C.  has  inclndsd  total  talus  in  BwoWwi  Ca^  fcmntsry. 

ahouM  ha  li       lad  I*  Braaldyn  Haltfrti  BbIImmI   iiOtiiuv 

BONDING:  .||og 

Omitted      T.  C  

8B(^  TOOLS;  gailMI 
Bkortaga.  •   • "*»*^ 

HILLING  STOCK:  ^ 
Shortags  of  wrtra  tnMks. .  —  •  •  -  v   JJSi 


■mKWffPA^^^r   

MliaOLLANEOUS  EQUIFIODIT: 

Omitted  Ibjy  T.  C  

CONSENTS: 

O^mA  ly  T.  C    

BftllAGES:  agSM 
Omitted  by  T.  C   wm,^ 


PROPERTY  SHORTAGE   •'!?'S5 


1817^17 


80 


TAILS  m. 

SUMMARY  OF  SHORTAGES: 

Track  and  Structures   9IS7,632 

Elcetrioal  and  Mechanical.   40.200 

Rolling  Stock   ig.igs 

TOTAL  PHYSICAL  PROPERTIES..   §246,017 

Land  and  Rfgkt  ol  Wagr   UJBBO 

Consents.   9,800 

  26,900 

GRAND  TOTAL  SHORTAGES     $317,917 


81 


STATEMENT  V. 
THE  BROOKLYN  HEIGHTS  RAILROAD  COMPANY. 
COMPAMY  SaVBNSES  COMPUTED  ON  TABLE  UL 

WamA  m  SliofftacM  ia  Tnuuit  Vabutkm  Report. 

EXPENSES  DUBim  ooinamicfi0ii: 

Ijitsbbst: 

Om  Lmmd  mmd  JUfht  of  W«y,  OBeMrv  of  pcrpi*wl  EhMMte: 

taMWXS%XS|  ywn.....  

IMMX8%X2i  jmn  

^%SSx8%X2J  yeart  •  

On  Comtntei  Cott,  czduuTC  of  Rolling  Stock: 

$227,8WX8%X  1  jmt  

•l%lSiX8%X}  jmt   ^ 

SOB-IOXM.  OF  ABOVE  INTEREST  ITEMS   »32^11 

On  Co»t  of  Procuri»§  Mmtg  (i     o«  item  termed  Brokerage  in  Valuation 

Report):  .iMii 
|li.7MX8«XS  ymm    •  •  •  •    '''^ 

TOTAL  INTEBSST.   

PMMXtJ»X2i  years  •  

_„  ,  _mw  Mm  iKspwmoK  Cobts: 

0»  CoHtTMt  M,  «ieli»iTe  of  Rollfi«  Block: 

1187^X3%  for  1  year  •  

Mmmsnumm,  Ezacimvs,  Lcao.  ak»  Office  Costs: 

Om  CoatsMt  Ooot:  •j  an 

|Mi^7X8%.  *• 

'**^£iraUe  IK»tio«  of  Blllil.^  123 
|Mly817X.88%.   

TOTAL  OOMPAinrEXPBNBlBIWmiHO  aMiBTlOCriOR... 

EXPENSES  PRIOR  TO  CXmSSBXSCiUM  t 

9%  of  CoBtraet  Coet:  lAjn 

COST  OF  PROCLTllNG  MONEY  :  *^        tM^mtmm  IlMai 

(T*mcd  for  Brokerage  in  Valuation  Report)  for  tlie  foUofWiSf  Iti^i^^ 

 *  Cost   Oft  OAA 

IRightolWv  36,200 

    26,900 

OMfuy "  i^inim  pttor  tii  OoMtracliM  

TOTAL.    WWl 

|i|fy8ilXf%.  •   •  *  

i|^yy^|>,  fmumAirv  'MXMBUMB  .,.......•«•   #88,860 


105 


STATBHBirr  IL 


CmmY  ISLAND  AND  GRAVHWD  RAILWAY  CUKPANY. 
COMFAMY  BXnmtSt  COMPUTSD  OM  TABLS  I. 

MSJ^msm  WfmsMQ  construction: 

On  Contract  Cott,  ex^Mivt  «f  BoiUag  Stodci 

|631,897  X  8%X1  jWir.  ••••  1*2,568 

On  Rolling  Stock : 

1378,525  X  8%  X  i  year  


SUB-TOTAL  OF  ABOVE  INTEREST  ITEMS   950,122 

On  Ctmt  of  Proemrm§  Jfoncy  {%.  «.,  on  item  termed  Brokerage  in  ValuaUon 

wmjmxmxt  jmn  


JOTAL  wsnoLMset.     HMW 

XawKBEUKC,  Design  and  Inspection  Costs: 

Ob  Contract  Costs,  exclusive  of  Rolling  Stoclc: 

$531 ,897  X  3%   lIiMf 

Administration,  ExEctrmn,  Lbsal  ahv  OffiOt  OiMls: 
Ob  Comtract  Cost: 

|tlCM22X2%  

""""SuSning  Stock,  •fdvsiart  to  M%  of  OMitract  CsHt 

ttlMltX     ^ 


fOTAL  omPMm  BXFBI8B8  noBmo  ooHfifBDcnnii. . .  •M.aw 

BXPENSES  prior  TO  OOMBfRUCfiOlf : 
•%  of  Contract  Coat: 

$910,422X6%  •  ■  ■   MtWS 

COST  OF  PROCURING  MONEY: 

(Itemed  Brokerags  ia  Vatantkm  Rqpovt)  for  tlw  f«ikwii«  Itow: 

Contract  Cost  •  ;  ^^'^ 

Interest  items  (except  for  interest  on  cost  of  procuring  money) 

Engineering,  Design  and  inspection  Costs.   5,957 

A^uaiatrstioii,  BMCUtiw,  Legal  and  Office  Coata   18,208 

n^m^mTctelB  wmiM'  to  GontrafltiMl  54,625 


TOTAL..   $1,040.7M 

$1,04»J8»X6%  


TOTAL  COMPANY  EXPENSES  


it 


STATEMENT  IV.  107 

CONEY  ISLAND  AND  GRAVESEND  RAILWAY  COMPANY. 

BaMd  OB  QuaatiU  StMrtafes  Only  and  on  Transit  ConvniMimi  VatantioB  Bomm 

Prices,  Except  as  Stated. 

GRADING: 

Excavation : 

T.  C.  has  16,062  cu.  yds. 
should  have    20,286  cu.  yds. 

shortage  3,334  en.  yds.   98,618 

BAILS,  RAIL  FASTENINGS  AND  JOINTS: 
Bail  Fastaiinga: 

T.  C.  has  1,382  cwt. 

should  have  1,728  cwt. 

■hnrtage  341  cwt.   $1,698 

Jd^ts: 

T.  C.  has  2,136  joints 

should  have  2,599  joints 

joints   8,047 


SHORTAGE   4,745 

TRACK  LAYING  AND  SURFACING: 

T.  C.  has  41,704  lin.  ft. 
should  have  41,813  lin.  ft. 

shortage           109  Ifa.  ft   M 

POLES  AND  FIXTURES: 

T.  C.  has  434  poles 

should  haw        518  poles 

shortaga              84  poles   7,683 

(A)9ei,196 

BONDING: 

Omitted  by  T.C   l^lfNI 

BOLLING  STOCK: 

Shortage  an  trade  parts,  motor  parts,  ctMmpressOT  parts,  controller  parts,  cuT' 

body  fittings,  etc   5,278 

CONSENTS: 

Omitted  Igr  T.  C     12,800 

DAMAGES: 

Omitted  hy  T.  C   24,400 

PROPERTY  SHORTAGE   $69,774 

Ebwtage  In  oonstnietioB  overliead  bdng  iMM%  of  (A)  $21,196   l;aM 

TABLE  m.  ino 

SUMMAKY  OF  8H0BTA0BS: 

Track  and  Structures   $22,396 

Electrical  and  Mechanical   6,100 

Belliag  Stock   5,278 

TOTAL  PBY6ICAL  PBOPERTIBS.   $33,774 

OoBsents   12,800 

 -   24,400 

GRAND  TOTAL  SHORTAGES   $70,974 

87 


STATEMENT  V. 

CONEY  ISLAND  Aim  QKAmBND  RAILWAY  COMPANY. 
COMPANY  BXPSmit  dMIPIITBD  ON  TABLB  HI. 


BLWHBBB  mmsm  oimwmjcfmmi 

IPTEBEST: 

On  Content*: 

flMMXlSXSI  jmm   •  •  IM* 


|M,4MX8%Xti  jmn  

On  OmOmet  CoH,  ezduiT*  «f  BoUiif  Stoikt 
$28,49«X8%X1  fMT...   

Om  Rolling  Stock: 

$5^78X8% Xi  year  

SUB-TOTAL  OF  ABOVE  INTEREST  ITEMS   $9,828 

Om  cm  0/  PrfMmm§  Money  («.  9^  on  item  tormed  Brokerafe  in  Valuation 

mm  xt»xi   MJJ 

p  WyVAb'  IMYBHilim' «    •   ^l^i^M 

SironiXEinro,  Design  akd  Inspection  Costs  : 

Ok  CoBtract  Costs,  szelnsive  of  Rolling  Stock: 

128,498X  3%  for  1  year  

Abministbation,  ExEcunvx,  Lsa&L  axs  Omn  Ooans 

On  Contract  Cost: 

188,774X2%   «75 

TOVAL  CJOMPANY  EXPENBI8  IVUIUNO  C0N8TBUCIIQN. . .  118.188 

RES  PRIOR  TO  ccmsnujcnoaf : 

•%  of  Contract  Cost: 

tSS,n4Xtft.  WW 

CXmr  OP  FROCDHINCI  MONEY  .- 

(Termed  Brokerage  in  Valuation  Report)  for  the  foUowing  items: 

Contract  Cost   $33,774 

Consents   12,800 

Bunages.   24,400 

latowt  Items  (esBipl  for  faitenal  oa  eoit  tf  piwiilWK  — ly)  9,826 

Bi«iMerin«,           a»l  I>fPMti«i  OmI>   8M 

JUbiinistmtiom  £iae«ti«%  Le|nl  *  OOee   ^  ffS 


TOVAI**   iBIwISi 

wmM  mmmt  ixpensbs   mm 


112  STATEMENT  II. 

THE  BROOEIfTN  CITY  RAILROAD  COMPANY. 
COMPANY  XZVBM8BS  COMPUTED  ON  TABLE  L  t  . 

EXPENSES  DUBOfO  OONSIRUCfHHr: 
Ihibbest: 

■0m  Lmnd  wd  M^ki  of  Wmjf,  cudmiTe  of  pcrpctaal  Mm— to; 

|3»17S^Xt%Xt|  jmn     fWiilW 


Contract  Coat,  excluaiv*  of  ' 
$30,209,706X  8%X1  jmt   8,416,776 


On  Rolling  Stock: 

$8,794^43  X  8%  X  J  year   118,188 

SUB-TOTAL  OF  ABOVE  INTEREST  ITEMS   $3,227,368 

On  Co»t  of  ProeuriMg  Money  (i.  e.,  on  item  termed  Brokerage  in  Valuation 

|B^ie6^X8%X8  jmn    478.888 

TOTAL  ornounr    •  •M»M«8 

On  Land  and  Right  of  W9§: 

IM7S,888XtJ%X8}  jmn.   111,118 

draammnB,  Dmeii  hm  Ihbpectiok  Costs: 

Ob  Contract  Costa,  acelnsive  of  BoUiag  Stock: 

$30,209,706X8%   906,291 

ADMndSraATIDK,  EZECVTIVE,  LEGAL  AND  OFFICS  CoSTS  : 

Ob  Ooalnct  Cost: 


On  Boiling  Stock,  insurablo  pmikm  of  BuiMtega,  and  F^drar  Pteat  mhI 
Siiiistation  EquifMl,  mpMuA  to  .08%  of  CoirtnMt  Ooiis 

i88y888,M»X4l6«.   ^^'^^ 

TOTAL  COMPANY  EXPENBIB  IWItllfO  00N8TSUCTI0N. . .  86,632,860 

EXPENSES  PRIOR  TO  OOESTBUGfiOillt 
6%  of  Contract  Coat: 

|I8M8MX8«. ....     M<8W 

COOT  OF  PBOCDIUKO  MONEY:  .  „  . 

(Termed  Brokerage  in  Valuation  Report)  for  the  following  items: 

Contract  Coet   '^S'^SS'SS 

Land  and  Rigkt  of  Way   8478,888 

iBteraai  itena  (exc^t  for  interest  on  coat  of  procurmg      „„„,  ..^ 

Tnx^      '..*.!!!!  r. .  I   222,148 

Enirineering,  Design  «M  iMpoetloa  Ooate   ?25^i 

Adminiatei^  &M«tbo  wd  Legal  and  Office  Costs  ...  780,079 

,  ^ , , ,   19,608 

^gflOf       OiUiMOltai. . .  •  •   2,340,237 


mtAL.   flMTl^W 

||%iyS41iX81b.    

mm  OOMPAJIY  BlPEim  ■  ■  »IM81,874 


STATBlfBNT  HI. 

THE  BROOKLYN  CITY  RAILROAD  COMPANY. 
COMPAMY  EXPENSES  COMFUTED  ON  TABLE  IL 

Classified  in  Transit  Valuation  as  "  Not  Used  in  Opentkm." 

EXPENSES  DURING  CONSTRUCTION: 

On  Land  and  Right  of  Way,  exclusive  of  perpetual  Easeaiaits: 

$571,200X8% X2}  years   1114,840 

On  Contract  Cost,  exclusive  of  Rolling  Stock: 

fl,»6,885X8%Xl  ymt  

SUB-TOTAL  OP  ABOVE  INTEREST  ITEMS   $211^43 

On  Coat  of  Proemrimg  Money  (i. on  item  tenned  Brdcerage  in  Valuation 

Report) : 

$130,393 X 8% X 2  years     20,863 

TOTAL  INTEREST.   W^ISi 

Taxes: 

On  Ltmd  mud         of  Wisf  .* 

1671^X1^X11 7HU»-   38^ 

Enoineebing,  Design  and  Inspection  Costs: 

On  Contract  Costs,  exclusive  of  Rolling  Stock: 

8i;818,288X8%.   afl,488 

AoMnnaTKATioir,  BrnuuTiVi,  Lmai.  ard  Onraos  Gooib: 
Ob  Contract  Cost : 

$1,216,285X2%  ,   84,326 

ImmAHCB:  . 

On  inonnUo  portion  of  BuOdingi,  cquivslent  to  .05%  d!  Contract  Cost: 

81,818,186X^6%.   008 

TOTAL  COMPANY  EXPENSES  DURINO  OONSTBtTCTION. . .  fSSsilS 

EXPENSES  PRIOR  TO  GONSTIKJCTIONi 
6%  of  Contract  Cost: 

$1,216,286X  6%   72,877 

COST  OF  PROCURING  MONEY: 

(Termed  Brokerage  in  Valuation  Beport}  for  it3»  foOodring  ItcMS: 

Contraet  Cost   $1,216,285 

Land  and  Right  of  Wsgr   671,008 

btereat  items  (exoept  fdr  intwest  on  oost  (tf  procuring  money)  811,643 

Taxes   39,984 

Engineering,  Design  and  Inspection  Costs   36,489 

Administrative,  Executive,  Legal  and  Office  Costs   24,326 

Insurance   608 

Conpuy  Eqiienscs  prior  to  Construetkm   72,977 

TOTAL   $2,173,218 

$2,173,212X6%   130,393 

*  TOTAL  COMPANY  EXPENSES   $537,183 


114 


115 


116 


sTAnmfT  IV. 

T»B  WtOOKLYM  CHY  BAILROAD  COMSIArr. 


C»ADING: 

Excavation: 

T.  C.  baa  444^06  cu.  yds. 
BiMNild  bave  M8l,M8  ev.  ydto. 

118,449  en.  7^. 


eoBcrete  under  steel  ties  omitted. 


ftlSifM 

11^ 


SAILS,  RAIL  FASTENINGS  AND  JOINTS: 


T.  C.  lias 

S4,S49  net  tons 

■hwild  Iwve 

34,900  act  tou 

dMtrtagB 

Bail  Fastenings: 

T.  C.  has 

37.727  cwt. 

alumld  have 

45,504  cwt. 

sh(Mrt«g* 

Joints: 

T.  C.  kas 

44,107  mA 

should  have 

64,000  eaeh 

shortage 

19,893  eaeh  

  186400 

SHQRTAQE.  

SPBCIAL  WOBK: 

T.  C.  hM  100,008  lia.  ft. 
should  have  100,287  Mn.  ft. 
shortage  884  lin.  ft  

TRACK  LAYING  AND  SURFACING: 
T.  C.  kas  1^40,255  lin.  ft. 
should  have  1,249,236  lis.  it. 
shortage  8,890  lia.  fl. . . 

PAVING  INSIDE  RAILROAD  AREA: 
T.  C.  has       1.053,180  sq.  yds. 
htm  1|061»761  s^  yds. 


818^ 


2,300 


iUDQES,  TRESTLES  AMD  OOLfBMXBt 


EOMmcAii  cmmmscmm  nrcLi 

Underground  conduit?,  ducts  in  place: 
T.  C.  has       1,669,600  duct  ft. 

1,684,025  duct  ft. 
14^  dM(  ft... 


^Mring  over  duetoi 

T.  C.  has       88,228  sq.  yds. 

63,930  sq.  yds. 
18,708  8%  yds.. 


llltlM 


*  «  «  a  «•'»'< 


FURNITURE  AND  FIXTURES :  117 
SHORTAGE   $118,800*** 

DOCKS  AND  WHARVES: 

68Bd  St.  Doeic  Appueatly  T.  C.  has  omitted  the  old  dock  which  is 
900'X260'  with  erib  construction  on  piles  filled  with  rock  and 
earth  with  cinder  surface,  and  has  only  iBeiaded  the  new  piff 

which  extends  beyond  the  old  dock    $87,300 

Sentli  Sisth  St  Deck,  slip  uMl  shelter,  oiaitted  tgr  T.  a   187*100 

SHOSTAOE.   214^ 

POWBE  BOUSE  AND  SUBSTATION  EQUIPMENT: 
.     Shortaffs  of  the  valne  of  52nd  St.  Power  Plant,  which  T.  C.  has 
iaclnded  in  B.  S.  T.  Co.  inventory,  but  whidi  is  owned  by  B.  C. 

R.  R.    This  should  be  transferred  toB.C.R.R.   $88^ 

Substation  No.  1956  Hancock  St.: 

(Halsev)  shortage   88^800 

Substation  No.  3-1430  Fulton  St.: 

(TtaipkfaB)    47,800 

SHORTAGE.   225,200 

BONDING: 

Omitted  by  T.  C   188,000 

TRACK  SWITCHES: 

Oaitted  hgr  T.  C    88,000 

MACHINE  SHOP  TOOLS: 

Shortage.     120,500 

BUILDINGS: 

T.  C.  Report  includes  all  Maspeth  Depot  as  belonging  to  B.  C.  R  R.  35.29% 
of  the  value  of  this  building  or  $115,000  should  be  transferred  to  B.  H.  R.  R. 

lOLLING  STOCK:  118 
Shortage  in  extra  tradn,  cKtia  nolora,  extra  eoailranen,  eaetca 

ogB^vssors,  of   $170,600 

Shartafs  te  traek  parts,  wlar  p«n%  coKtroUer  pacta,  roaapressar 

parta,  he^y-fittiagB,  ate  . .    174^ 

SBOBKAflfl^jii -aji''  •  ».•..».».......•.••..•.••.»••..  344^900 

mSCELLANBOOS  BQUIPMENT: 

Oadtted  by  T.  C   147,300 

CONSENTS: 

Omitted  by  T.  C   888,800 

DAMAGES: 

Omitted  by  T.  C   818^00 

PROPERTY  SHORTAGE   $3,559,600 

LAND  AND  RIGHT  OF  WAY   804,900 

Oartace  la  eoaatnwtk»  «fv«rhaad  hahig  8.88%  of  (A)  $784,500.   41,000 

$3,805,560 

Deduct  Acoooat  Maspeth  Depot   115,000 

(T^raasfarrad  to  B.  H.  R.  B.) 

TABLB  ni. 

SUMMARY  OF  SHORTAGES: 

Track  and  Structures   $989,200 

Electrical  and  Mechanical   864,600 

RoUing  Stock    

TOTAL  SHORTAGE  PHYSICAL  PROPERTY   $2,198,700 

Real  Estate  aad  Right  of  Way.   204,960 

Consents.  •  •  •  •   368,600 

  9lBjm 

GRAND  TOTAL  SHORTAGBS  


STATBMSNT  V. 


THE  BROOKLYN  CITT  RAILROAD  COMPANY. 
COMPANY  EXPENSSS  COMPUTED  ON  TABLE  lU. 

BXPENBES  DimiNO  CXINSTIIllCTIQirt 


On  Lmid  «Mi  Miaht  of  Way,  exclusive  of  perpetual  Easements: 
On  Content*  : 

$368,000X8% X2i  years  

|918,9MX8%Xli  Twrs  

Oil  Comirmet  CotI,  ajwhuive  oi  BoUiag  Stodc: 

fl^,800X8%Xl  jmr  

OmMoOmg  Btoek: 

|Si4,i00X8%Xi  yMur.  


73,799 


em-iauL  of  above  imERiBr  items 


42.164 


TOTAL  imsnsT..  

Taiks: 

On  Land  and  Right  of  Way: 

|IM.9«XiJ%XSi  TMH  

BimirEEBiNG,  Design  and  Inspection  Costs: 

On  Contract  Costs,  exclusive  of  Rolling  Stock: 
$l,8SS,«»xa%  tm  1  TMT  


AaunvisTRATioN,  Exmrufi*  Lmiai*  aiis  Omn  'Ootn: 

On  Contract  Costt 

$2,I9S»7WXS%  


On  Power  Plant  and  Substation  Equipment,  equivalent  to  .05%  of  Con- 
tract Cost: 

i2,188,70OX.05%  

TOTAL  COMPANY  EXPENSES  DI7BIK0  OONBTBUCTION. . . 

UPBNSES  PBIOE  TO  CONSTSUCTION: 
9%  <rf  CoBtmet  Coat: 

$2,108,700X6%   .   

COST  OF  PROCURING  MONEY: 

(Termed  Brokerage  in  Valoatloa  Beport)  tar  Hm  Mkmtag  itoav: 

Contract  Coat   $2,198,700 

Land  and  Right  of  Way   204,960 

CoBMBta...;   368,600 

918.300 
)  453,574 
14,347 
55,«14 
43,974 
1,099 
131,922 


1,099 


9S10b7a 


IntcNvt  Items  (eiwpt  for  iBtciwI  <m  ««l  of  frmiiriaff 

Taxes  •  ■  

Engineering,  Desisn  and  Inspection  Coats. 
Adminiatratkm,  £nenti<Ml  m  '  ~ 

Insuranee.  

PiIm'  iv 


TOTAL. 

ii,3eijiifixt%  


imm  ooMPAmr  costs. 


$1,006,14$ 


SUMMARIES  AND  PERCENTAGES  OF  OMISSIONS 
OR  SHORTAGES  FOR  ALL  COMPANIES. 


TABLE  lr-BAS£D  m  OQNTBACfr  008T. 
TABLE  B-BASED  ON  OONTRAOT  OOOT  PLUS  lA^. 


4*9 


SUPPLEMENT  NUMBER  ONE 
OF  REVIEW  DATED  JULY  29.  1922 
FRANCIS  BLOSSOM 


SUPPLEMENT  NUMBER  ONE 
OF  REVIEW  DATED  JULY  29.  1922 

OF  THE 

Report  by  the  Transit  Commission  Bureau  of  Valuation 
dated  February  15,  1922,  and  titled 

"Valuation  as  of  June  30, 1921,  of  the  Physical  Property  of  Rapid  Transit 
and  Street  Surface  Railroads  in  the  City  of  New  York" 

WITH  SPECIAL  REFERENCE  TO 

THE  STREET  SURFACE  RAILROADS  OF  BROOKLYN 


AUGUST  2.  1922 


BY 

FRANCIS  BLOSSOM 


STATEMENT.  122 

This  statenofint  and  the  annexed  tables  and  explanatory  matter  constitute 
Snpplmnat  Kmnber  One  of  the  Beview  dated  July  29,  1922,  made  by  the 
undersigned  of  the  Bepoit  dated  Fdmmy  15,  1922,  of  Vsliiation  Biueftii 
of  the  Transit  Commission. 

The  objective  of  this  Supplement  Number  One  is  to  praseut  certain  modi- 
fications of  the  figures  given  in  such  Review,  and  to  summarize  such  modifi- 
cations in  the  form  of  a  new  Summary  Table  to  replace  the  table  given  on 
page  49  of  tocii  Be^iew,  lAdtk  new  Table  contains  also  the  oom{>arative  figures 
im  each  compo^  tak»n  from  the  Valuation  Bnrean  Beport 

There  is  also  given  here,  folbwing  the  above-motioned  revised  Snmmaxy 
Table,  a  detailed  statement,  also  in  tabular  form,  showing  the  method  by  which 
the  figures  of  the  new  Summary  Table  are  computed.  Explanatory  notes  are 
given  after  the  detailed  table  in  order  to  make  clear  the  character  of  each  of  the 
items  thereof.  Bmk  items  comprise  certain  additions  and  certain  deductions,  jos 
Tbe  figures  on  page  49  of  the  Review  are  changed  because  some  i>ropertj  and 
items  that  should  have  been  listed  were  not  included  in  the  tables  of  su<^ 
Review ;  and  somie  property  and  items  that  should  have  hem  omitted  or  redneed 
in.  amount  were  included  in  the  tables  of  such  Review. 

FBAHOia  BZdOMOlC 

Augud  8, 1922. 


103 


Hi  fiiwf  Mmd  mA  liwitf  ■  Ifiiliniil  fVuMm 

liiiwt||i%  Qmnm  Obibi^'*  MburiMn  .ffiiiwiiiil  Cm 

i^aH^« 

8,307,628 

14,322,822 

H»BnK>klyn  Heists  Railroad  Company  

1,523,521 

2,188,909 

OoMjr  Island  A  Gravesend  Railway  Company  

977,318 

1,231,066 

iifi%iei»M7 

S2 


CO  CP  >0  1-4  IO  T-)  CO 
l*»CP  CO  ^  O  <-! 
COOOOiQ 


S  : 

3,485 

3,485 
1,227,581 
1,231,066 

The  Brooklyn 
Heighto 
RaUroMl 
Company 

89,065 
645 

9,710 
4,137 

4,137 
5,573 
2,183,336 
2,188,909 

Sonth 
Brooklyn 
Railway  Co. 

$118,108 
20,362 

138,470 
130,675 
12,282 
142,957 
-4,487 
14,327,009 
14,322,522 

Brooklyn, 
Qneena 
County  Jk 
Suburban 
Railroad  Co. 

$94,618 
11,640 
2,052,080 
2,158,338 
74,699 
11,656 
86,355 
2,071,983 
14,316,426 
16,388,409 

The  Coney 
laland  and 
Brooklyn 
Railroad  Co. 

$63,618 

4,855 

68,473 
41,856 
54,054 
95,910 
-27,437 

16,815,948 

The  Naasaa 

Electric 
Railroad  Co. 

$125,735 
7,884 

133,619 
50,597 
65,564 

116,161 
17,4.58 
34  31 S  24Q 

34,335,707 

s  si 

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